5 Dark Facts of CJNG Cartel, Revealed to Use Rp200 Billion Crypto After El Mencho’s Death!

Jakarta, Pintu News – The international community was shocked by the news of the death of Nemesio Rubén Oseguera Cervantes, known as “El Mencho,” the leader of Mexico’s most violent cartel, the Jalisco New Generation Cartel (CJNG). The death of this most wanted drug kingpin not only triggered a wave of violence in various Mexican states, but also exposed their highly sophisticated financial system.

Global regulators are now highlighting how these criminal networks have long utilized crypto and cryptocurrencies to support their illegal operations cross-border amidst the scrutiny of financial authorities.

El Mencho’s Death and CJNG Cartel Operations

El Mencho was killed in a military operation on Sunday, February 22, 2026, which immediately sparked riots in at least 20 states in Mexico. The United States State Department has previously offered a reward of $15 million or the equivalent of IDR 251,385,000,000 (exchange rate IDR 16,759) for information leading to the arrest of the leader of this foreign terrorist organization. The CJNG is known to have the largest cocaine, heroin and fentanyl trafficking capacity in the North American region, making it one of the most significant global security threats.

In the aftermath of his death, investigators began to uncover how the cartel’s financial infrastructure had rapidly evolved over the past few years. While physical violence took place on the streets, the cartel’s true power lay in their ability to move funds digitally without being detected by the traditional banking system. This case shows that the death of a single leader does not automatically stop the flow of illicit funds that are already integrated with modern technology in the forex market and other digital assets.

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Use of Bitcoin (BTC) and Tether (USDT) in Money Laundering

Investigations revealed that CJNG actively uses digital assets such as Bitcoin (BTC) and Tether (USDT) to move and launder the proceeds of drug crimes. Regulators noted that the cartel utilized complex transaction patterns such as peel chains and layering to disguise the origin of their illicit funds. The use of stablecoins such as Tether (USDT) is favored because of its value pegged to the dollar, providing the price stability needed when purchasing chemical raw materials internationally.

According to a Chainalysis report, chemical traders in China received more than $37.8 million in cryptocurrency from a Mexican cartel for the purchase of fentanyl precursor materials. The CJNG cartel was found to be using Chinese money laundering networks (CMLNs) that accounted for about 20 percent of total digital money laundering activity globally by 2025. This phenomenon represents a major challenge for law enforcement as blockchain technology is being used as a tool to facilitate the lethal synthetic drug trade on a worldwide level.

Regulatory Crackdown on Digital Asset Abuse

Authorities in the United States have charged several individuals, including a former DEA official, with allegedly conspiring to launder millions of dollars in CJNG cartel funds. In the scheme, cash was converted into cryptocurrency worth $750,000 or the equivalent of Rp12,569,250,000 as part of an effort to hide traces of the transaction. This crackdown is part of a global effort to ensure that the digital ecosystem remains clean from criminal activities that harm the wider community in various countries.

You should understand that this abuse does not reflect the intrinsic value of the digital assets themselves, which are actually designed for transparency and financial inclusion. Regulators are now tightening oversight of international crypto exchanges to prevent bad actors from exploiting loopholes in the emerging blockchain technology system. For honest investors, regulatory clarity after a high-profile case like this will create a safer and more reliable investment environment in the cryptocurrency market in the long run.

Also Read: 5 Reasons for BlackRock to Raise Bitcoin & Ethereum IDR 2.52 Trillion, Bullish Signal End of February 2026!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.

Reference:

• Kamina Bashir/BeInCrypto. El Mencho’s Killing Sparks Violence Across Mexico, Regulators Highlight Cartel Crypto Use. Accessed February 26, 2026.