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

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The world breathed a sigh of relief when one of its most notorious drug lords met his untimely demise. Nemesio Rubén Oseguera Cervantes, or as he was more famously known, “El Mencho,” was silenced on Sunday. But his death? Oh, it wasn’t just an end; it unleashed a violent storm across several states in Mexico. Bravo, El Mencho, you didn’t just run a cartel; you left behind chaos and fire. Literally.

But the story doesn’t end with bloody streets and burning cars. No, no. The ever-growing interest lies in the cartel’s financial playbook. Apparently, criminals have decided to go digital. Gone are the days of cash under the mattress-now, it’s all about crypto, baby. Mexican regulators, always a step behind, have started noticing how these criminal networks, like the notorious Jalisco New Generation Cartel (CJNG), have dipped their toes into the world of digital currencies.

So, Who Was El Mencho?

Well, El Mencho wasn’t just any run-of-the-mill fugitive. No, he was the kingpin, the big fish in Mexico’s criminal ocean. He led the CJNG, a group formed in 2009 that quickly shot up the ranks to become one of Mexico’s most ruthless and violent cartels. And the United States? Well, they noticed too-so much so that they decided to classify his merry band of drug runners as a Foreign Terrorist Organization in 2025. The Department of State even offered a juicy $15 million reward for his capture. Spoiler alert: He didn’t make it to retirement.

“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 text reads.

And how did El Mencho meet his end? A military operation, of course. A fitting end for a man who once thought he was untouchable.

But the death of this criminal mastermind didn’t exactly bring peace to Mexico. Far from it. Violence erupted in at least 20 states. Roads were blocked, cars torched, businesses reduced to ashes. The CJNG’s parting gift? A reminder that their power stretches far beyond one man’s death. And that, my friends, is the real tragedy here.

🚨🇲🇽 Armed clashes erupt with federal agents in Mexico

Violence spreads following the death of El Mencho, leader of the Jalisco New Generation Cartel, with social media footage showing running battles between armed groups and law enforcement in western states.

– Sputnik (@SputnikInt) February 23, 2026

Beyond the bloodshed, the cartel’s financial operation shows no signs of slowing down. In fact, it’s becoming more sophisticated by the day. What started as smuggling now includes high-tech financial maneuvers that could give any corporate banker a run for their money.

Crypto and Cartel Finance

Let’s not kid ourselves. Cryptocurrencies like Bitcoin (BTC) and Tether (USDT) are hardly innocent bystanders in this game. Sure, they’re used for legitimate transactions, but come on, let’s not pretend they haven’t caught the eye of criminal masterminds.

Since 2020, reports have surfaced showing that the likes of the CJNG and the Sinaloa Cartel are using Bitcoin to launder their dirty money. Who knew the digital age would make drug trafficking so… efficient?

In 2024, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) blew the whistle on how Mexican cartels were using virtual currencies like Bitcoin, Ethereum, and even Monero to buy up fentanyl precursor chemicals from China. The Chinese suppliers? Well, they’re still advertising their services on the dark web-because apparently, a little danger adds spice to business.

And as if this couldn’t get more complicated, Chainalysis reported that these chemical traders were raking in millions through crypto, laundering it all through intricate transaction patterns. Peel chains, cross-chain swaps, cash-outs through Chinese exchanges-sounds like a thriller, doesn’t it?

“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.

Oh, and the money laundering doesn’t stop there. In August 2025, FinCEN pointed out that the CJNG, Sinaloa Cartel, and others were using Chinese money laundering networks (CMLNs). These networks? They now dominate the world of crypto-related money laundering. Fantastic, isn’t it?

To top it off, some poor souls decided to get their hands dirty for the CJNG. In one recent case, Paul Campo and Robert Sensi were indicted for laundering a mere $12 million for the cartel. That’s right, $12 million. Guess laundering money through crypto isn’t as easy as they make it seem in the movies.

“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 release said.

So, here we are. El Mencho is dead, but the cartel’s financial empire lives on. Its money flows across borders, hidden in the shadows of the blockchain. And the fight against this network? It’s just beginning.

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2026-02-25 07:57