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One of the world’s most wanted drug lords has died. Nemesio Rubén Oseguera Cervantes, known as “El Mencho”, was killed on Sunday. His death led to a wave of violence in several Mexican states.
Beyond the security impact, attention is also directed to the cartel’s financial operations. In recent years, regulators and researchers have documented how Mexican criminal networks have integrated cryptocurrencies into their operations.
Who is El Mencho?
El Mencho was among Mexico’s most wanted and the leader of the Jalisco New Generation (CJNG) cartel. According to the US State Department, CJNG was founded in 2009. It has since evolved into one of the most violent drug gangs in Mexico.
“It has been assessed to have the highest capacity for the trafficking of cocaine, heroin and methamphetamine in Mexico, and in recent years, including the trafficking of fentanyl in the United States,” it read.
On February 20, 2025, the United States officially designated the cartel as a foreign terrorist organization under Section 219 of the Immigration and Nationality Act.
In addition, the Department of State of the United States has offered a reward of $ 15 million for information that leads to the arrest or conviction of El Mencho. Murder Sunday during a military operation.
After his death, riots spread in parts of the country. Second For the BBCAt least 20 states saw unrest as cartel members blocked roads and burned vehicles and businesses.
While the immediate repercussions were felt in the streets, previous data show that the influence of the CJNG has transcended regional control.
In recent years, investigators have tracked the cartel’s increasingly sophisticated financial infrastructure. This includes their use of digital assets to move and launder money across borders.
Cryptocurrency Finance and Cartels
Cryptocurrencies like Bitcoin (BTC) and Tether (USDT) are not inherently illegal. Widely used for legitimate investment, payments and financial innovation.
However, regulators and law enforcement have identified cases where these digital assets have been used in transactions associated with illegal activities.
At the beginning of 2020, reported Reuters reported that US and Mexican authorities have noticed an increase in the use of Bitcoin between… large drug trafficking groups, Including CJNG and the Sinaloa Cartel, for money laundering.
In 2024, She stated The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has identified transnational criminal organizations based in Mexico. She used virtual coinsincluding Bitcoin, Ethereum, Monero and Tether, to buy pre-fentanyl chemicals and equipment from Suppliers in China.
found a report Chainalysis reported in March 2025 that suspected alchemical traders in China received more than $37.8 million in cryptocurrencies between 2018 and 2023. Major Mexican cartels, including CJNG, were identified as buyers of these previously used materials. Manufacture of synthetic opiates.
“Blockchain analysis reveals that former chemical suppliers advertised directly on darknet markets and messaging applications, and accepted digital assets in exchange for chemicals shipped to Mexico. Once paid, crypto funds are laundered via complex transaction patterns, including chain skimming, stratification, and cross-chain exchanges, and are often disbursed through international mules. revealed TRM Labs.
In August 2025, highlighted FinCEN also reported that the CJNG, the Sinaloa Cartel, the Gulf Cartel, and other transnational criminal organizations based in Mexico used Chinese money laundering networks (CMLNs) to launder illicit proceeds.
It is worth noting that Chainalysis said that The CMLN now plays a dominant role In money laundering related to digital currencies. In 2025, these networks represent about 20% of the known money laundering activity of cryptocurrency.
As the activity developed, the organizational effort also increased. According to the US Attorney’s Office for the Southern District of New York, Paul Campo, a former DEA officer, and Robert Sensi were charged with conspiring to provide material support to the CJNG.
“As part of the scheme, CAMPO and SENSI agreed to launder approximately $12,000,000 of CJNG’s drug proceeds; launder approximately $750,000 by converting money into cryptocurrencies; and they made a payment of approximately 220 kilograms of cocaine, understanding that such payment would result in the distribution of approximately $500,000, and the sale of approximately $500. CAMPO and SENSI (1) will receive a direct portion of the drug proceeds as profits and (2) will receive an additional commission for laundering the remainder of the drug. As he said Press release.
Thus, the death of El Mencho represents an important moment in Mexico’s fight against organized crime. However, the financial systems that support the major cartels remain complex, cross-border, technologically appropriate, and extend far beyond any individual.
