$2M in Crypto Seized in Money Laundering Probe Tied to Sinaloa Cartel

Federal agents in New Mexico have seized over $2 million in cryptocurrency as part of an investigation into money laundering and drug trafficking. The seizure is linked to a network that allegedly works with the Mexican Sinaloa Cartel to move cocaine proceeds across the border.

The FBI says the crypto holdings, valued at around $2.2 million, represent laundered cash from the cartel's drug proceeds as well as money tied to other crimes, including the ByBit heist in early 2025. The investigation began in February 2025 and has involved undercover officers purchasing cocaine from a man named Miguel Torres.

Undercover agents paid Torres with $30,000 in Tether, a stablecoin meant to hold a stable value relative to the U.S. dollar, as a 'proof of concept' for transferring drug proceeds via crypto. Over several months, agents picked up bulk cash payments and converted them to crypto using the Tron platform.

The FBI alleges that the accounts tied to these funds are controlled by 'professional money laundering organizations' engaged by the cartel, as well as entities linked to the Iranian armed forces.