Chile Busts Cross-Border Money Laundering Ring
Chilean authorities just pulled apart a sprawling money laundering network that shuffled millions—some of it through cryptocurrency—across at least seven countries. The operation had ties to Tren de Aragua, a Venezuelan criminal group that’s been expanding fast lately, and honestly, it’s the kind of scheme that makes you wonder how much of this flies under the radar.
The arrests last month snagged 52 people, all allegedly involved in filtering dirty money into Chile’s financial system before scattering it to Venezuela, Colombia, the U.S., Paraguay, Mexico, Spain, and Argentina. Bank accounts did some of the work, but crypto played a role too.
Where the Money Came From
According to Trinidad Steinert, a regional prosecutor in Tarapacá, the laundered cash came from pretty much every brutal crime you can think of: human trafficking, drug smuggling, kidnappings, even murders. The total? Over $13.5 million moved for Tren de Aragua alone.
The group’s been making headlines lately for spreading beyond Venezuela—into the U.S. and other parts of Latin America. And their methods? Apparently borrowed from Mexican cartels, who’ve been using crypto to hide money for years.
David Saucedo, a security analyst in Mexico, put it bluntly: Venezuela’s not exactly a crypto hub, but Tren de Aragua learned from the experts. “They’re difficult to trace,” he told DW. “No paper trails, no physical handoffs. Just digital transfers that vanish into the system.”
Why Crypto Works for Criminals
It’s not exactly news that criminal groups like untraceable money. But the scale here is what’s unsettling. OFAC—the U.S. Treasury’s sanctions arm—already labeled Tren de Aragua a “Transnational Criminal Organization” last year, accusing them of weaving into local crime networks and, yes, laundering funds through crypto.
The thing is, this isn’t some small-time operation. Tren de Aragua’s got reach, and if they’re taking cues from Mexican cartels, this probably isn’t the last we’ll hear of it. Crypto’s not the problem, obviously—it’s how it’s used. And right now, it’s making life easier for groups that don’t exactly play by the rules.
Chile’s bust is a win, sure. But you’ve got to figure there’s more where this came from.
