Justice Department Targets Cartel Money Laundering Networks Turning to Crypto

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The Justice Department is intensifying efforts to disrupt the financial networks of Mexico's most violent drug cartels, targeting money brokers who are increasingly using cryptocurrency to launder drug proceeds from the U.S. to cartel leaders in Mexico. Recent prosecutions of alleged money brokers highlight the cartels' evolving tactics to conceal cash and evade detection as law enforcement cracks down on traditional money laundering methods.

Why it matters

Cutting off the cartels' financial lifelines is seen as essential to undermining their ability to sustain operations and fuel the flow of dangerous drugs into American communities. By going after money brokers rather than just street-level traffickers, prosecutors aim to reach higher into cartel leadership and potentially uncover more indictments through cooperation.

The details

The Justice Department has brought charges against four alleged Mexico-based money brokers who are accused of overseeing the movement of drug proceeds and taking a commission before the money is returned to the cartels. The brokers are said to arrange for cash to be picked up across the U.S. and conceal it by converting it to cryptocurrency to get it across the border, as law enforcement has disrupted other money laundering methods.

• Since the beginning of President Donald Trump's second administration, the Mexican government has turned over more than 90 high-level defendants with ties to cartels in three transfers.
• The latest transfers to the U.S. include the four alleged money brokers, who face money laundering conspiracy charges in Kentucky's federal court.

What they’re saying

What’s next

The Justice Department says the prosecutions of the alleged money brokers could lead to further indictments against higher-level cartel leaders if the defendants cooperate and provide information that allows prosecutors to reach further up the chain of command.