Spanish authorities have dismantled an international network accused of combining cocaine trafficking with money laundering services for other criminal organisations, seizing 1,300,000 USDT as part of a coordinated operation that also netted cash, luxury vehicles, boats and firearms.
The Guardia Civil, working alongside the Policía Nacional, EUROPOL, the DEA and the Policía Judiciaria of Portugal, arrested 27 people following an investigation that began in September 2023. Authorities said officers "intervinieron" the stablecoin holdings during the operation, though the precise mechanism of seizure was not detailed.
Alongside the cryptocurrency, investigators seized 270,000 euros in cash, 76,000 dirhams and more than 1,000 dollars. The operation included 38 simultaneous searches carried out across Spain and the Dominican Republic, resulting in the seizure of 40 high-end vehicles, two boats and six firearms, one of which was classified as a war weapon.
A dual revenue model
According to the Guardia Civil, the group represented the "rama española de la estructura criminal dirigida por destacados referentes del narcotráfico internacional," and displayed "elevada capacidad operativa y económica." Investigators described a business model built on two income streams: "doble vía de ingresos: por un lado, los beneficios derivados del tráfico de cocaína y, por otro, las comisiones obtenidas por los servicios de blanqueo prestados a otras organizaciones criminales."
The network is linked to a cocaine seizure of more than 1,500 kilos in Panama, underscoring the scale of the trafficking operations tied to the Spanish cell. Investigators say proceeds were funnelled into luxury property developments in Ibiza, Marbella, Madrid, the Dominican Republic and Dubai.
Assets frozen pending prosecution
A Spanish court has decreed a prohibition on the sale of 95 properties, including 16 luxury villas, as part of efforts to secure assets ahead of prosecution. In total, 200 movable goods and 95 properties have been blocked. Five international arrest warrants have been issued for suspects believed to remain outside Spain.
The case follows earlier Spanish enforcement actions against cryptocurrency-enabled crime, including the dismantling of two networks investigated for cryptocurrency fraud exceeding 750,000 euros, pointing to sustained scrutiny of digital assets as a laundering channel by Spanish authorities.
The involvement of USDT, the dollar-pegged stablecoin issued by Tether, in a laundering operation of this scale is likely to draw further attention from European regulators already focused on tightening oversight of stablecoin flows under incoming EU rules.
