At a Glance
- Jorge Figueira, 59, faces charges for laundering roughly $1 billion in cryptocurrency
- He primarily used Tether (USDT) on the Tron blockchain to move illicit funds
- Stablecoins now make up 84% of crypto crime, up from 12% in 2020
- Why it matters: The case shows how authoritarian regimes and criminals exploit dollar-pegged tokens to bypass sanctions
The U.S. Department of Justice has unsealed charges against Venezuelan national Jorge Figueira, alleging he laundered about $1 billion in cryptocurrency for global criminal networks. Court documents say the 59-year-old relied on Tether’s USDT stablecoin and the Tron blockchain to shift massive sums at low cost.
$1 billion traced through wallets and shell firms
Agents mapped a sprawling operation. According to the FBI, Figueira opened bank accounts, exchange accounts, crypto wallets, and shell companies to receive, mask, and forward dirty money.
“The FBI has identified approximately a billion dollars’ worth of cryptocurrency that was passed through crypto wallets utilized by Figueira and his laundering operation to individuals and businesses throughout the world,” said FBI Special Agent Reid Davis in a DOJ press release.
The indictment centers on USDT on Tron, a network known for sub-cent fees and five-second settlement times. Figueira allegedly bragged on a recorded call that “[USDT] is used a lot for laundering money,” a quote cited in court papers first reported by DL News.
Stablecoin crime jumps seven-fold since 2020
A fresh Chainalysis report shows how quickly criminals have migrated to dollar-linked tokens. Key figures:
| Metric | 2020 | 2023 |
|---|---|---|
| Share of illicit crypto in stablecoins | 12% | 84% |
| Total illicit crypto volume | $20 billion | $154 billion |
Nation-states drive much of the growth. Iran, Venezuela, and other sanctioned governments use stablecoins to settle imports and move reserves beyond the reach of U.S. banks.
Monthly claims of $700 million
Beyond the $1 billion the FBI has already traced, prosecutors say Figueira claimed he could process up to $700 million a month for clients. If proven, that would rank his network among the largest single crypto laundering pipelines uncovered to date.
The Venezuelan faces up to 20 years in prison on money-laundering counts. A federal judge has not set a trial date.
Tron’s founder under separate scrutiny
Tron, the blockchain Figueira favored, was created by Justin Sun. House Democrats have accused the Securities and Exchange Commission of giving Sun preferential treatment on crypto projects linked to former President Trump. The allegations are part of a broader probe into pay-to-play claims at the agency.
Technically, Tron is a delegated-proof-of-stake chain often described as a more centralized alternative to Ethereum. Its speed and low cost have made it a hub for USDT transfers; Tether now circulates more than half of its supply on Tron.
Tether freezes $182 million after report
Roughly a week before the DOJ announcement, Tether froze $182 million in USDT. The move came hours after The Wall Street Journal published an investigation into Venezuela’s use of the stablecoin to skirt economic sanctions. Tether said the freeze was part of routine cooperation with law-enforcement agencies worldwide.
Crypto’s double edge for authoritarian regimes
Venezuela’s government and its citizens rely on digital assets for opposite reasons:
- The regime converts oil revenue and seized funds into USDT to avoid U.S. banking bans
- Ordinary Venezuelans buy bitcoin and stablecoins to escape the bolivar’s 400% inflation and strict capital controls
A similar pattern is playing out in Iran. Local exchanges report surging withdrawals to non-custodial bitcoin wallets as protestors fear fresh sanctions and account freezes. Blockchain data show a 70% jump in peer-to-peer bitcoin trading since nationwide demonstrations reignited last autumn.
Industry pivots to stablecoins despite crime wave
Even as criminal use climbs, Wall Street and Silicon Valley are racing to issue their own dollar tokens. The GENIUS Act, signed last year, creates a federal license for regulated stablecoins and requires monthly audits. Trump-linked venture World Liberty Financial has already released its own token, USD1, which Democrats allege was fast-tracked in exchange for political donations.
Tether remains dominant, with a market cap of $110 billion, but rivals are gaining ground:
- Circle’s USDC: $34 billion
- First Digital’s FDUSD: $3 billion
- PayPal USD: $0.6 billion
Key Takeaways
- The DOJ’s case against Figueira is the latest sign that investigators are tracing stablecoin flows in real time
- With 84% of illicit crypto now in stablecoins, blockchain analytics have become a core tool for sanctions enforcement
- Tether’s cooperation with the FBI and other agencies shows issuers can freeze funds, but only after tokens land on centralized platforms
- Regulators face a balancing act: encourage dollar-linked innovation while closing loopholes that allow sanctioned regimes to move billions
