Cartier pleaded guilty to operating an unlicensed money transmitting business and conspiracy to commit bank fraud. His exchange consisted of a network of U.S.-based shell companies and more than a dozen accounts at U.S. banks, which he maintained by misrepresenting the nature of his businesses to financial institutions. Cartier fraudulently claimed the entities operated in software publishing and software development, while they were actually used to receive and transmit drug money and other crime proceeds. He used forged contracts, invoices, and other business records to make transactions appear legitimate to banks.
Cartier received drug money in cryptocurrency form, converted it to hard currency, deposited the cash into shell company accounts he controlled, and transmitted the funds through the money laundering network. The funds were ultimately withdrawn in local currency in Colombia. In addition to the prison term, Cartier was ordered to pay approximately $2.36 million in forfeiture, representing the commissions he retained. The court also ordered the forfeiture of specific bank accounts held in the names of the shell companies.
The sentencing follows an April 2021 investigation where a court seized approximately $937,000 in drug trafficking proceeds from Cartier's shell accounts. Cartier later admitted to federal agents that he had lied to banks regarding his status as a crypto exchange, despite previously claiming to have active anti-money laundering and know-your-customer protocols.
Separately in France, prosecutors have charged 88 individuals, including 10 minors, in connection with a series of kidnappings and extortions targeting cryptocurrency owners, tied to 12 ongoing judicial investigations.