In a significant development, the notorious drug lord Nemesio Rubén Oseguera Cervantes, widely known as “El Mencho,” was killed during a military operation. His demise has sent shockwaves through Mexico, inciting violence in various states as cartel members reacted with aggression, blocking roads and setting fire to vehicles and businesses. This turmoil has reignited discussions about the financial operations of the Jalisco New Generation Cartel (CJNG), particularly its adoption of cryptocurrency in facilitating illicit activities.
El Mencho was a central figure in the CJNG, which has been recognized by the US Department of State as one of the most formidable drug trafficking organizations in Mexico since its formation in 2009. This cartel has gained infamy for its violent tactics and is responsible for significant trafficking of drugs, including cocaine, heroin, and fentanyl into the United States.
As the immediate aftermath of his death unfolded, it became evident that the CJNG”s influence extends beyond mere territorial control. Over recent years, investigations have unveiled a complex financial ecosystem that the cartel has developed, including its strategic use of digital currencies to move and launder funds internationally.
Cryptocurrencies like Bitcoin (BTC) and Tether (USDT) are not inherently illegal; they are also utilized for legitimate transactions and investments. However, regulatory agencies have increasingly noted their use in unlawful dealings. Reports from as early as 2020 indicated a rise in Bitcoin transactions linked to major drug trafficking organizations, including the CJNG and its rival, the Sinaloa Cartel, primarily for laundering proceeds from drug sales.
According to a 2024 statement from the US Treasury”s Financial Crimes Enforcement Network (FinCEN), transnational criminal groups in Mexico, including the CJNG, have been employing virtual currencies like Ethereum (ETH) and Monero for purchasing precursor chemicals used in the synthesis of fentanyl. A report by Chainalysis revealed that between 2018 and 2023, suspected chemical suppliers in China received over $37.8 million in cryptocurrency payments, with the CJNG identified as one of the key purchasers of these illicit substances.
Moreover, FinCEN highlighted the role of Chinese money laundering networks (CMLNs) in facilitating the CJNG”s financial operations. These networks are gaining prominence in the cryptocurrency money laundering landscape, accounting for around 20% of known activities in this space as of 2025.
The recent indictment of individuals for conspiring to provide material support to the CJNG underscores the ongoing regulatory scrutiny. El Mencho”s death is a pivotal moment in Mexico”s ongoing battle against organized crime, yet the financial mechanisms that empower these cartels remain intricate and adaptive, transcending the influence of any single leader.
