Chile Cracks Down on Tren de Aragua’s Crypto Money Laundering Scheme

Chile recently cracked down on a money laundering scheme that involved moving millions of dollars to various countries, including Venezuela, Colombia, the U.S., Paraguay, Mexico, Spain, and Argentina. The Tren de Aragua used crypto assets to launder some of these criminal funds.

Chile Dismantles Tren de Aragua’s Crypto Money Laundering Operation

Cryptocurrency has become yet another tool in the arsenal of criminal organizations to launder their funds. Chilean authorities recently reported the dismantling of Tren del Mar, an operation used by the Venezuelan criminal organization Tren de Aragua to launder funds across the U.S. and Latin America.

The operation, which was executed last month, involved the arrest of 52 individuals who used a set of bank accounts and cryptocurrency assets to introduce illegally obtained funds into the Chilean financial system and then move them to seven other countries: Venezuela, Colombia, the U.S., Paraguay, Mexico, Spain, and Argentina.

According to Tarapaca’s regional prosecutor, Trinidad Steinert, the funds laundered were obtained through human trafficking, homicides, kidnappings, extortion, migrant smuggling, drug trafficking, and fines.

Reports indicate that over $13.5 million was laundered for the Tren de Aragua, which has been in the headlines due to its quick expansion from Venezuela to other countries of the continent, including the U.S.

David Saucedo, a Mexican security expert, states that the criminal group has adopted this modus operandi from Mexican cartels, who pioneered the use of cryptocurrency for these objectives.

Talking to DW, he stated:

As you might guess, there are no major cryptocurrency transactions in Venezuela, but being in contact with Mexican criminal mafias, they have begun to use money laundering tactics such as the use of cryptocurrencies.

Saucedo explained that cryptocurrency transactions are convenient for these groups to obfuscate the origin of their funds. “They are difficult to trace, transactions can be made without leaving a trace, they are done electronically, they do not require a physical transaction, documents, or paper money,” he stressed.

Last year, the organization was designated by the Office of Foreign Assets Control (OFAC) as a Transnational Criminal Organization. The OFAC alleges that Tren de Aragua “infiltrated local criminal economies in South America, established transnational financial operations” and “laundered funds through cryptocurrency.”

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