Crypto Laundering: Puerto Rico Duo Nabbed

⏱ 3 min read

Two alleged money launderers are cooling their heels in a Puerto Rico jail after a transatlantic takedown. Pedro J. Espinal-Arthur and Luis Febles-Peralta were extradited from the Dominican Republic on March 11, 2026, to face federal charges for washing drug proceeds through cryptocurrency. The schemes allegedly ran from April 2021 through July 2022, moving dirty cash and hiding its origins.

Espinal-Arthur is accused of operating a cryptocurrency conversion scheme from April 2021 to January 2022, funneling drug money into digital currency with the help of unnamed co-conspirators. Febles-Peralta, along with his brother Germán E. Arredondo-Peralta (arrested in Puerto Rico), ran a similar operation between January and July 2022. Both allegedly used crypto to mask the source of funds and evade detection.

The feds are going after $2,741,560 they say is tied to the Febles-Peralta and Arredondo-Peralta operation, filing a forfeiture claim to seize the cash. Febles-Peralta also faces separate drug trafficking charges, adding to his legal woes.

Both Espinal-Arthur and Febles-Peralta were first arrested in the Dominican Republic on January 13, 2026. US Attorney W. Stephen Muldrow of the District of Puerto Rico spearheaded the extradition effort. Court dates have not yet been announced. Expect a protracted fight – these guys aren’t handing over millions easily.