DOJ Charges Venezuelan National in $1 Billion Crypto Laundering Scheme

The U.S. Department of Justice has charged a Venezuelan national in a $1 billion cryptocurrency laundering scheme. Jorge Figueira, 59, is accused of using multiple bank accounts, crypto exchanges, and private wallets to move and conceal the illicit funds across borders according to DOJ charges. The probe, supported by the FBI, alleges Figueira routed the money through a network of digital wallets to obscure its origin as alleged.

Figueira allegedly sent the funds to liquidity providers to convert the cryptocurrency into dollars, then transferred the funds to his bank accounts and eventually to final recipients according to the investigation. The U.S. Attorney for the Eastern District of Virginia, Lindsey Halligan, emphasized that money laundering at this scale enables transnational criminal organizations to operate and inflict real-world harm as stated.

The DOJ alleges Figueira sought to conceal the nature of the funds and potentially facilitate criminal activity in multiple countries according to allegations. Outbound transfers included destinations in high-risk jurisdictions such as Colombia, China, and Mexico as reported. If convicted, Figueira could face up to 20 years in prison according to sentencing guidelines.

Why Did This Happen?

Cryptocurrency crime has surged in recent years, with stablecoins becoming the preferred vehicle for illicit transactions. According to a Chainalysis report, illicit addresses received at least $154 billion in 2025, a 162% increase from 2024 as data shows. In contrast, Bitcoin's use in illicit transactions dropped to just 7% of the total volume according to analysis.

The increased reliance on stablecoins in illicit finance highlights a shift in how criminals exploit the crypto ecosystem. In 2020, Bitcoin accounted for roughly 70% of illicit transactions as reported. The growing use of stablecoins underscores the need for enhanced regulatory and enforcement efforts across jurisdictions.

How Did Markets React?

The broader crypto market reacted with caution, reflecting ongoing investor concerns about regulatory scrutiny and enforcement. Bitcoin traded above $90,000 on Monday despite the DOJ's criminal investigation into Federal Reserve Chair Jerome Powell according to market data.

Ethereum and XRP followed similar patterns, rising briefly before retreating amid profit-taking and increased volatility. XRP dropped over 1% to $2.05 at the time of writing as observed. The decline in XRP was attributed to narrowing retail demand, with futures Open Interest dropping to approximately $4 billion according to trading data.

Investors are monitoring the RSI and MACD indicators for signals on potential corrections or recovery moves. A close above the 100-day EMA at $96,005 could signal a recovery toward the $100,000 level as technical analysis indicates. For Ethereum, the 50-day EMA at $3,125 remains a key level to watch according to market analysis.

What Are Analysts Watching Next?

The DOJ's case against Figueira highlights broader efforts by U.S. authorities to combat crypto-based money laundering. Law enforcement agencies, stablecoin issuers, and blockchain analytics firms are increasingly coordinating to trace and disrupt illicit activities according to reports.

In a separate development, Tether froze over $180 million in a single day due to suspicious activity detected across Tron-based wallets as disclosed. The move underscores the growing vigilance among stablecoin issuers to mitigate financial crime risks.

Analysts are also watching for further developments in the DOJ's ongoing investigations. The case may influence future enforcement actions and regulatory approaches to cryptocurrency transactions. The U.S. government's ability to track and disrupt illicit flows could shape global crypto policy discussions according to analysis.

The DOJ's actions signal a continued focus on leveraging technological and financial tools to identify and prosecute individuals involved in large-scale money laundering schemes. The outcome of this case could have wider implications for the global enforcement landscape as noted.

The U.S. government's actions reinforce the importance of transparency and accountability in the evolving crypto ecosystem. As digital assets become increasingly integrated into global finance, regulatory and enforcement bodies are adapting to address the challenges posed by anonymous and borderless transactions according to analysis.

This case underscores the growing coordination among law enforcement and private entities in tracking and disrupting illicit financial flows. The DOJ's successful prosecution of Figueira could serve as a precedent for future actions targeting large-scale crypto-based criminal networks as reported.

The investigation into Figueira is part of a broader trend of increased scrutiny of cryptocurrency transactions. As stablecoins gain prominence in illicit finance, regulators and enforcement agencies are likely to enhance their surveillance and response mechanisms according to industry analysis.

The case also highlights the technical challenges posed by decentralized and private crypto transactions. The DOJ's use of blockchain analytics to trace the origins of illicit funds may influence future enforcement strategies as observed.

The U.S. government's continued efforts to disrupt money laundering schemes reflect the broader global trend of addressing crypto-related financial crime. As more jurisdictions adopt regulations and enforcement measures, the landscape for illicit actors is likely to become more challenging according to reports.