RCMP Uncovers Massive $6.3 Million Crypto Laundering Scheme in Quebec

A sweeping investigation by the Royal Canadian Mounted Police (RCMP) has led to serious charges against three Quebec men, accused of orchestrating a sophisticated money laundering operation involving millions of dollars in cryptocurrency. Mohamed Benabderrazak, 48, Ali El-Khatib, 39, and Abderrazak Oughanem, 43, are facing charges including laundering proceeds of crime and fraud, following a meticulous two-year probe into their financial activities.

The intricate scheme allegedly saw the trio funneling a staggering $6.3 million, believed to be the ill-gotten gains from a large-scale fraud, into various cryptocurrencies.

The RCMP's Financial Crime Unit in Montreal launched its extensive investigation in 2022, meticulously tracing the flow of illicit funds and uncovering the methods used to obscure their origins.

According to court documents, the alleged fraud at the heart of this case originated in 2018, targeting a U.S.

company. The proceeds from this initial deception were then allegedly transferred to Canadian bank accounts controlled by Benabderrazak, El-Khatib, and Oughanem. From these accounts, the money was reportedly used to acquire a substantial amount of cryptocurrency, effectively 'cleaning' the dirty money and making it harder to track.

The RCMP's relentless efforts have resulted in significant seizures, demonstrating the scale of the alleged criminal enterprise.

Authorities have confiscated a luxurious residence, frozen numerous bank accounts containing illicit funds, and seized a high-end Mercedes-Benz vehicle. Crucially, a significant quantity of cryptocurrency linked to the operation has also been secured, underscoring the RCMP's growing capability in combating digital financial crimes.

All three accused individuals were arrested on May 29 and have since been released on bail.

They are currently awaiting their next court appearance, scheduled for September 9 at the Montreal courthouse. This case highlights the persistent efforts of law enforcement to dismantle complex financial crime networks, particularly those leveraging the anonymity and speed of cryptocurrencies to facilitate their illicit activities, sending a clear message that such sophisticated schemes will not go undetected.