London Fintech Owner Faces Allegations in Drug Money Laundering Scheme

A London-based fintech owner is now at the center of allegations that he played a pivotal role in aiding notorious drug traffickers attempting to launder vast sums of money through a cryptocurrency exchange platform.

The scale of the operation is rarely seen in European legal proceedings.

Authorities in Belgium have initiated proceedings to extradite Caio Marchesani, a 38-year-old Italian, from the UK as part of their ongoing efforts to dismantle a transnational criminal organization.

Marchesani, who owns Trans-Fast Remittance, a payments business regulated by the Financial Conduct Authority (FCA), is accused of knowingly and intentionally facilitating the hoarding of substantial cash amounts for Sergio Roberto De Carvalho, a Brazilian individual previously described by Interpol as one of the world’s most wanted kingpins before his arrest in 2022.

Marchesani is also alleged to have managed cryptocurrency accounts on behalf of Flor Bressers, a Belgian national known as the “finger cutter,” who was apprehended in the same year.

Marchesani’s arrest took place in May at Heathrow Airport, raising concerns about the effectiveness of regulatory controls in the British fintech industry.

Transparency International UK has called for more robust supervision in light of this case and findings that over one-third of UK-licensed electronic money institutions display red flags.

The FCA has acknowledged its ongoing supervisory work concerning Trans-Fast and related matters.

The Origins of the Investigation

The Belgian investigation dates back three years when Dutch customs officials seized over 12 tonnes of cocaine, valued at over €260 million ($283 million), from containers at Rotterdam, Europe’s busiest port.

This seizure eventually led authorities to Bressers and De Carvalho, with Marchesani becoming a focal point after breakthroughs in decrypting encrypted communications.

To date, 33 suspects, hailing from various countries, including Brazil, Hungary, the Czech Republic, and France, have been identified in connection to this criminal network.

Five individuals are in pretrial detention, including Bressers and De Carvalho in Belgium and Marchesani in the UK.

Belgian prosecutors allege that Marchesani managed 14 Binance accounts for Bressers and held cash on behalf of De Carvalho, charging unusually high rates for fund transfers, some as high as 9%.

Furthermore, most Trans-Fast customers were Brazilian, as filings from a separate employment case indicated.

However, a recorded company telephone message states that Trans-Fast is offline and unable to process orders.

This underground network reportedly combined modern technology with hawala, an age-old money transfer system practiced primarily in regions such as the Middle East, where remittances are predominantly based on trust.

The use of cryptocurrencies increased within this network following the challenges posed by the COVID-19 pandemic, which made cash deliveries more difficult.

Binance assisted law enforcement in the investigation by providing practical operational support.

Legal Defense and Ongoing Proceedings

While Marchesani’s lawyers vehemently deny the allegations, they assert that the money used for his bail surety has legitimate origins from a UK-based company focusing on healthy eating in a cafe setting, Acai Berry Foods Ltd., of which Marchesani is the chief financial officer and a 50% shareholder.

The defense argues that the prosecution’s case is based on false, vague, ambiguous, or inaccurate particulars.

According to the employment case tribunal ruling, Marchesani, who previously interned at Deutsche Bank, aimed to transform Trans-Fast into an online bank.

Recent Companies House filings have indicated adding another owner to the registry.

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