El Mencho’s Killing Sparks Violence Across Mexico, Regulators Highlight Cartel Crypto Use

The death of Nemesio Rubén Oseguera Cervantes, known as “El Mencho,” leader of the Jalisco New Generation Cartel (CJNG), sparked widespread violence across at least 20 Mexican states, with cartel members blocking roads and attacking businesses. Beyond the immediate security concerns, authorities are increasingly focused on the CJNG’s financial operations, particularly its use of cryptocurrency for money laundering and funding activities. The CJNG has been identified as a major player in drug trafficking, including fentanyl, and was designated a Foreign Terrorist Organization by the US in 2025.

Investigations reveal that Mexican cartels, including the CJNG and the Sinaloa Cartel, have been utilizing cryptocurrencies like Bitcoin, Tether, and Monero to purchase fentanyl precursors from suppliers in China and launder illicit proceeds. Chinese money laundering networks (CMLNs) now dominate cryptocurrency-related money laundering, accounting for approximately 20% of known activity in 2025. Regulatory bodies like the US Treasury’s FinCEN have issued advisories highlighting these trends.

Recent indictments, including one against a former DEA official, demonstrate increased efforts to disrupt these financial networks. However, the financial systems supporting these cartels are complex, cross-border, and technologically adaptive, suggesting that El Mencho’s death, while significant, does not eliminate the broader challenge of combating cartel finance.

(Source：BeInCrypto)