Crypto Scam Money Launderers Charged for Laundering More Than $73 Million Through Deltec Bank

Crypto Scam Money Launderers Charged for Laundering More Than $73 Million Through Deltec Bank


In a significant crackdown on cryptocurrency fraud, two individuals in California have been charged with laundering over $73 million obtained through investment scams. These scams, often referred to as "pig butchering," trick victims into investing large sums of money which are then siphoned off and laundered through various means. This case highlights the ongoing battle against financial crimes in the United States.

The Extent of the Scam

The perpetrators orchestrated sophisticated investment scams, convincing unsuspecting victims to invest in what appeared to be legitimate opportunities. According to the U.S. Department of Justice, these fraudulent activities resulted in the accumulation of at least $73 million.

How the Money Was Laundered

The launderers utilized shell companies to move the illicit funds through Deltec Bank in The Bahamas. Once the money was deposited, it was converted into the Tether stablecoin, further obscuring its origins and complicating the tracing process.

Role of Deltec Bank

Deltec Bank is a prominent institution in the cryptocurrency sphere, known for its connections to Tether and FTX. The bank's involvement in this case underscores the challenges of regulating financial entities operating across multiple jurisdictions. In July 2023, U.S. authorities seized tens of millions from Deltec accounts, indicating the seriousness of the investigation into these money laundering activities.

US Authorities' Actions

In response to these illicit activities, U.S. authorities have intensified their efforts to track and seize assets connected to cryptocurrency money laundering. The recent seizure of funds from Deltec accounts marks a significant step in this ongoing investigation.

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1. What is "pig butchering"?Pig butchering is a type of investment scam where victims are groomed over time to invest large sums of money into fraudulent schemes.

2. How was the money laundered?The money was moved through shell companies and Deltec Bank, then converted into the Tether stablecoin to obscure its origins.

3. Why is Deltec Bank significant in this case?Deltec Bank is notable for its ties to Tether and FTX, making its involvement in the laundering scheme particularly significant.

4. What actions have U.S. authorities taken?U.S. authorities have seized tens of millions of dollars from Deltec accounts and are continuing to investigate the laundering activities.

5. What is Tether?Tether is a type of cryptocurrency known as a stablecoin, which is pegged to the value of a fiat currency like the U.S. dollar.


The case of the $73 million laundering through Deltec Bank highlights the complexities of combating financial crimes in the digital age. As cryptocurrency continues to evolve, so too must the strategies for regulating and securing financial transactions. For more insights into cryptocurrency regulations and to learn how Vibranium Audits can protect your investments through comprehensive smart contract audits, visit our Crypto Regulation Blog.

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