El Mencho’s Killing Sparks Violence Across Mexico, Regulators Highlight Cartel Crypto Use
One of the world’s most needed drug lords is useless. Nemesio Rubén Oseguera Cervantes, often known as “El Mencho,” was killed on Sunday. His loss of life triggered a wave of violence throughout a number of Mexican states.
Beyond the safety impression, consideration can be turning to the cartel’s monetary operations. In current years, regulators and researchers have documented how Mexican legal networks have integrated cryptocurrency into their operations.
Who was El Mencho?
El Mencho was amongst Mexico’s most needed fugitives and the chief of the Jalisco New Generation (CJNG) cartel. According to the US Department of State, the CJNG was fashioned in 2009. It has since advanced into probably the most violent drug cartels in Mexico.
“It has been assessed to have the best cocaine, heroin, and methamphetamine trafficking capability in Mexico, and over the previous few years, consists of the trafficking of fentanyl into the United States,” the textual content reads.
On February 20, 2025, the United States formally designated the cartel as a Foreign Terrorist Organization pursuant to Section 219 of the Immigration and Nationality Act.
In addition, the US State Department had supplied a $15 million reward for data resulting in the seize or conviction of El Mencho. He was killed on Sunday throughout a navy operation.
Following his loss of life, unrest unfold throughout elements of the nation. According to the BBC, no less than 20 states skilled disturbances as cartel members blocked roads and torched autos and companies.
While the quick fallout performed out within the streets, previous information exhibits that CJNG’s impression has prolonged past territorial management.
Over the previous years, investigators have tracked the cartel’s more and more subtle monetary infrastructure. This consists of its use of digital property to maneuver and launder funds throughout borders.
Crypto and Cartel Finance
Cryptocurrencies similar to Bitcoin (BTC) and Tether (USDT) will not be inherently illicit. They are broadly used for legit funding, funds, and monetary innovation.
However, regulatory and regulation enforcement companies have recognized cases wherein these digital property have been utilized in transactions linked to unlawful actions.
As early as 2020, Reuters reported that US and Mexican authorities noticed an rising use of Bitcoin amongst main drug trafficking groups, together with the CJNG and the Sinaloa Cartel, for laundering cash.
In 2024, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) stated that Mexico-based transnational legal organizations were using virtual currencies, together with Bitcoin, Ethereum, Monero, and Tether, to buy fentanyl precursor chemical compounds and gear from suppliers in China.
A March 2025 report by Chainalysis discovered that suspected China-based chemical merchants obtained greater than $37.8 million in cryptocurrency between 2018 and 2023. Major Mexican cartels, together with the CJNG, have been recognized as patrons of those precursors used to manufacture synthetic opioids.
“Blockchain evaluation reveals that precursor chemical suppliers promote straight on darknet markets and messaging apps, accepting digital property in alternate for chemical compounds shipped to Mexico. Once paid, crypto funds are laundered by complicated transaction patterns together with peel chains, layering, and cross-chain swaps, and infrequently cashed out by Chinese exchanges or worldwide mules,” TRM Labs revealed.
In August 2025, FinCEN additionally highlighted that the CJNG, the Sinaloa Cartel, the Gulf Cartel, and different Mexico-based transnational legal organizations have been utilizing Chinese cash laundering networks (CMLNs) to launder illicit proceeds.
Notably, Chainalysis reported that CMLNs now play a dominant role in cryptocurrency-related cash laundering. In 2025, these networks accounted for roughly 20% of recognized cryptocurrency cash laundering exercise.
While the exercise has scaled, regulatory focus has additionally intensified. According to the US Attorney’s Office for the Southern District of New York, Paul Campo, a former DEA official, and Robert Sensi have been indicted for conspiring to offer materials assist to CJNG.
“As a part of the scheme, CAMPO and SENSI agreed to launder roughly $12,000,000 of CJNG narcotics proceeds; laundered roughly $750,000 by changing money into cryptocurrency; and supplied a cost for roughly 220 kilograms of cocaine on the understanding that the cost would set off the distribution and sale of the narcotics price roughly $5,000,000, for which CAMPO and SENSI would (i) obtain straight a portion of the narcotics proceeds as revenue; and (ii) obtain an additional fee upon the laundering of the steadiness of the narcotics proceeds,” the press launch said.
Thus, El Mencho’s loss of life marks a major second in Mexico’s struggle in opposition to organized crime. Yet the monetary techniques supporting main cartels stay complicated, cross-border, and technologically adaptive, extending far past any single particular person.
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