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COINTURK NEWS > Cryptocurrency News > Colombia arrests 8 in $42 million crypto drug laundering operation, all face US extradition
Cryptocurrency News

Colombia arrests 8 in $42 million crypto drug laundering operation, all face US extradition

In Brief

  • 🚨 8 suspects arrested in Colombia over alleged $42 million crypto drug laundering network.

  • 💰 Officials in Colombia and the US claim the group used smurfing and tokens to mask drug funds.

  • 🌎 All detainees face extradition to the US, building on previous $USDT laundering crackdowns.
Dr. Levent Kurt
Dr. Levent Kurt 27 minutes ago
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Colombian authorities arrested eight suspects accused of laundering millions for drug cartels through cryptocurrency, in an international operation coordinated with US law enforcement. The Office of the Attorney General of Colombia announced the arrests, stating the individuals are linked to complex schemes converting drug trafficking profits into digital assets to obscure their origins.

Contents
Operations Target Four CitiesSeparate $42 Million Case Linked to New YorkBackground on Recent Crackdowns

Operations Target Four Cities

The raids were carried out jointly by the Technical Investigation Corps (CTI) of the Colombian Fiscalía and the national army, with teams deployed to Cajicá, Maicao, Barranquilla, and Bogotá. Investigators said the coordinated effort targeted networks believed to be using digital currencies to facilitate large-scale money laundering for narcotics groups.

During the operations, police detained Guillermo Carpio Cárdenas, known as “Gallo,” who is alleged to be the leader of the first group in question. Alongside Carpio Cárdenas, officials also arrested Alex Alberto Castillo Gómez, Jhon Jairo Torres Peláez, Nizar Hachem Sawan, Andrés Mauricio Guarnizo Vaca, Danilo Andrés Hernández Junco, and Juan Daniel Arenas Uribe, also identified as Juan Arenas.

The United States District Court for the District of Puerto Rico filed charges against the group, alleging they established a structure to mask drug trafficking proceeds through digital assets and complex deposit networks. US prosecutors claimed the group employed “smurfing”—a method of splitting transactions into smaller amounts to evade detection by financial intelligence units.

Mini dictionary: Smurfing, a money laundering technique, involves breaking up large transactions into smaller sums to avoid triggering reporting requirements by authorities.

Allegations from the US District Court for the District of Puerto Rico describe the dismantled network as using a blend of deposit systems, cryptocurrency tokens, and smurfing tactics to conceal proceeds from large-scale drug trafficking operations.

Separate $42 Million Case Linked to New York

A second investigation led authorities to arrest Nassim Orfale Vasquez in Barranquilla. Vasquez faces indictment in the United States District Court for the Southern District of New York, where he stands accused of operating an independent crypto-based laundering network. According to the US Internal Revenue Service, Vasquez conducted over $42 million in suspicious cryptocurrency transactions since 2018.

Prosecutors emphasized that Vasquez’s activities were not directly connected to the Puerto Rico group, highlighting the growing use of a variety of laundering structures operating in Colombia.

Colombian law enforcement noted ongoing inquiries into whether additional organizations along the coast have adopted similar methods for laundering drug-related funds with digital assets.

The Attorney General’s office will follow established extradition protocols for all suspects, indicating that incoming cases will move forward in cooperation with US courts and due process will be upheld in Colombia.

Background on Recent Crackdowns

These arrests reportedly build on earlier US-Colombian efforts against illicit crypto networks. In a related high-profile case, Colombian citizen Leonardo de Jesus Zuluaga Duque—known as “Rey”—was sentenced to 160 months in a US federal prison after heading a stablecoin laundering operation.

Under the leadership of President Abelardo de La Espriella, criminal extraditions to the United States have intensified. His administration has prioritized action against drug organizations but has drawn criticism over its firm stance, despite his high approval ratings among regional leaders.

According to the Attorney General, formal extradition proceedings will now begin for the eight detained suspects, with assurances that legal rights and due process are being maintained as cases are prepared for US courts.

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Dr. Levent Kurt 23 October, 2026 - 1:58 pm 23 October, 2026 - 1:58 pm
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Dr. Levent Kurt
By Dr. Levent Kurt
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Levent Kurt, who has been closely following the cryptocurrency and blockchain ecosystem since 2013, is the Editor-in-Chief and Co-Founder of COINTURK.Kurt, who holds a Ph.D. in Data Science, conducts research on Bitcoin, altcoins, blockchain technologies, digital asset markets, data analysis, and global developments in the cryptocurrency sector. He is the author of “Cryptocurrency Bitcoin: In Pursuit of Financial Freedom”, published in 2015.In the news, analysis, and research published on COINTURK, he aims to provide readers with reliable and understandable information by combining a data-driven approach with market experience and an assessment of technological developments.
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