Man Involved in Laundering $21 Million Through Tether Pleads Guilty to Crypto Money Laundering

A Rhode Island man has pleaded guilty to laundering $21 million through Tether cryptocurrency before U.S. District Court Judge Angel Kelley. The final hearing is scheduled for November 25, 2024, the U.S. Attorney’s Office has said.

61-year-old Agustin Villa admitted to conspiring to commit money laundering and his involvement in an advanced international drug smuggling and money laundering ring.

In May 2023, 12 people were charged across various locations in the U.S. for their involvement in the drug and international money laundering ring. The network, first discovered in Greater Boston in 2021, was led by Jin Hua Zhang, based in Staten Island, New York.

The ring included a large number of criminals. Zhang, the ringleader, laundered bulk cash for drug dealers and money launderers for a fee. Within a year, approximately $25 million was laundered through Tether cryptocurrency.

During several arrests, Villa was identified as a courier for a drug trafficking organization that utilized Zhang’s operation.

In May 2022, Villa delivered over $75,000 in cash to a witness, which was then converted to Tether and forwarded to Zhang. The funds were traced to Hong Kong, China, India, Cambodia, and Brazil.

Villa now faces up to 20 years in prison, a fine of $500,000, and up to three years of supervised release. Zhang, who also pleaded guilty, is scheduled for sentencing on January 15, 2024.

Globally, cryptocurrency is being leveraged for various businesses, but criminals also use it due to its largely untraceable nature. The crimes associated with cryptocurrency have led to its condemnation by countries around the world.

While some create crypto businesses to defraud unsuspecting users, others use it for illegal activities such as paying for drugs and other criminal dealings.