Colombia arrests eight for US extradition, one accused of moving $42 million in crypto

24 Oct 2026

24 Oct 2026, 03:35 UTC+02:00

Markets TradeReviewed News Desk

Crypto is increasingly part of the money trail in Latin American drug cases. Colombia’s Attorney General’s Office said it arrested eight people wanted for extradition to the United States on drug trafficking and money laundering charges, in operations in Bogota, Barranquilla, Cajica and Maicao.

The $42 million crypto case

Investigators captured Nassim Orfale Vasquez during a property search in Barranquilla. He is wanted by the US District Court for the Southern District of New York over alleged involvement in a network laundering drug money through cryptocurrency. Prosecutors say he moved about $42 million in suspicious crypto transactions since 2018. The case was built by IRS Criminal Investigation, and US authorities are examining whether the transfers were part of a broader operation on Colombia’s Caribbean coast designed to hide the source, destination or beneficiaries of drug proceeds.

The Puerto Rico group

The other seven are wanted by the US District Court for Puerto Rico on international drug trafficking, money laundering and conspiracy charges. The alleged ringleader is Guillermo Carpio Cardenas, known as “Gallo.” US prosecutors say the group moved proceeds through tokens, third party transfers and split deposits into accounts in Bogota and Barranquilla. Colombia’s army and navy assisted, with support from the DEA and IRS-CI.

All eight now face extradition proceedings, with judicial and administrative reviews before any final decision. The case follows the earlier sentencing in the US of Colombian national Leonardo de Jesus Zuluaga Duque, known as “Rey,” to 160 months for running a stablecoin laundering network. Colombia’s tax authority DIAN is also pushing for stricter reporting from crypto service providers.

What it means for traders

• Stablecoin rails are watched: law enforcement increasingly traces USDT flows tied to crime, and exchanges freeze linked funds.
• P2P risk: buying crypto peer to peer from unknown counterparties can expose you to tainted funds and frozen accounts.
• Use compliant exchanges: our exchange comparison lists platforms with clear KYC, and our testing methodology explains how we assess them.

Sources

• Cryptopolitan: Eight held in Colombia for US extradition, one accused of moving $42M in crypto

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