One of many world’s most wished drug lords is useless. Nemesio Rubén Oseguera Cervantes, often called “El Mencho,” was killed on Sunday. His demise triggered a wave of violence throughout a number of Mexican states.
Past the safety affect, consideration can also be turning to the cartel’s monetary operations. In recent times, regulators and researchers have documented how Mexican prison networks have integrated cryptocurrency into their operations.
Who was El Mencho?
El Mencho was amongst Mexico’s most wished fugitives and the chief of the Jalisco New Era (CJNG) cartel. In keeping with the US Division of State, the CJNG was shaped in 2009. It has since developed into one of the vital violent drug cartels in Mexico.
“It has been assessed to have the highest cocaine, heroin, and methamphetamine trafficking capacity in Mexico, and over the past few years, includes the trafficking of fentanyl into the United States,” the textual content reads.
On February 20, 2025, the US formally designated the cartel as a International Terrorist Group pursuant to Part 219 of the Immigration and Nationality Act.
As well as, the US State Division had provided a $15 million reward for data resulting in the seize or conviction of El Mencho. He was killed on Sunday throughout a navy operation.
El Mencho Reward Poster. Supply: US Division of State
🚨🇲🇽 Armed clashes erupt with federal brokers in Mexico
Violence spreads following the demise of El Mencho, chief of the Jalisco New Era Cartel, with social media footage exhibiting working battles between armed teams and regulation enforcement in western states. pic.twitter.com/FgYgIDWAPQ
— Sputnik (@SputnikInt) February 23, 2026
Whereas the quick fallout performed out within the streets, previous information exhibits that CJNG’s affect 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 belongings to maneuver and launder funds throughout borders.
Crypto and Cartel Finance
Cryptocurrencies akin to Bitcoin (BTC) and Tether (USDT) usually are not inherently illicit. They’re extensively used for respectable funding, funds, and monetary innovation.
Nevertheless, regulatory and regulation enforcement companies have recognized cases through which these digital belongings had 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 teams, together with the CJNG and the Sinaloa Cartel, for laundering cash.
In 2024, the US Treasury’s Monetary Crimes Enforcement Community (FinCEN) acknowledged that Mexico-based transnational prison organizations had been utilizing digital 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 acquired greater than $37.8 million in cryptocurrency between 2018 and 2023. Main Mexican cartels, together with the CJNG, had been recognized as consumers of those precursors used to fabricate artificial opioids.
“Blockchain analysis reveals that precursor chemical suppliers advertise directly on darknet markets and messaging apps, accepting digital assets in exchange for chemicals shipped to Mexico. Once paid, crypto funds are laundered through complex transaction patterns including peel chains, layering, and cross-chain swaps, and often cashed out through Chinese exchanges or international mules,” TRM Labs revealed.
In August 2025, FinCEN additionally highlighted that the CJNG, the Sinaloa Cartel, the Gulf Cartel, and different Mexico-based transnational prison organizations had been utilizing Chinese language cash laundering networks (CMLNs) to launder illicit proceeds.
Notably, Chainalysis reported that CMLNs now play a dominant position in cryptocurrency-related cash laundering. In 2025, these networks accounted for about 20% of recognized cryptocurrency cash laundering exercise.
Whereas the exercise has scaled, regulatory focus has additionally intensified. In keeping with the US Lawyer’s Workplace for the Southern District of New York, Paul Campo, a former DEA official, and Robert Sensi had been indicted for conspiring to offer materials assist to CJNG.
“As part of the scheme, CAMPO and SENSI agreed to launder approximately $12,000,000 of CJNG narcotics proceeds; laundered approximately $750,000 by converting cash into cryptocurrency; and provided a payment for approximately 220 kilograms of cocaine on the understanding that the payment would trigger the distribution and sale of the narcotics worth approximately $5,000,000, for which CAMPO and SENSI would (i) receive directly a portion of the narcotics proceeds as profit; and (ii) receive a further commission upon the laundering of the balance of the narcotics proceeds,” the press launch mentioned.
Thus, El Mencho’s demise marks a big second in Mexico’s struggle in opposition to organized crime. But the monetary techniques supporting main cartels stay advanced, cross-border, and technologically adaptive, extending far past any single particular person.
