Mexican man pleads guilty to laundering $4 million in drug proceeds through cryptocurrency

A 48-year-old Mexican man pleaded guilty in a Kentucky federal court to helping launder about $4 million in drug proceeds transferred to Mexico through cryptocurrency, the U.S. Justice Department said.

Carlos Erick Vázquez González admitted taking part in a network of financial intermediaries that collected drug proceeds in several U.S. cities. The organization then moved and laundered the money through cryptocurrency, according to court documents.

Vázquez González received nearly $4 million in a cryptocurrency wallet he controlled. He quickly transferred the funds to conceal their origin, then sold the cryptocurrency for U.S. dollars in Mexico and handed the cash to the intermediary who had arranged the collection of the proceeds in the United States. He received an estimated $40,000 commission.

He pleaded guilty to conspiracy to commit money laundering. His sentencing hearing is scheduled for Dec. 17, and he faces a maximum sentence of 20 years in prison. The DEA office in Lexington, Kentucky, investigated the case.