Cartels Tap Crypto to Fuel Latin America's Illicit Financial Systems
The rise of cryptocurrencies in Latin America has created an opportunity for criminal organizations to expand their illicit workflows. According to Dialogo Americas, the use of cryptocurrencies by these groups is primarily linked to money laundering.
Recent operations in Mexico and Brazil have dismantled mining complexes allegedly operated by the Brazilian Comando Vermelho and the Mexican Cartel Jalisco Nueva Generación, both of which have been implicated in crypto money laundering schemes. Álvaro Marques, a former Brazilian Federal Police agent, explained why mining is attractive for these groups: 'The advantage is that cryptocurrencies obtained through mining have a technical origin that can be associated with a legitimate activity.'
Latin American-based criminal organizations have also begun to build their own network of financial intermediaries to move cryptocurrencies in a 'legal way.' Operation Hidden Flow (Fluxo Oculto) dismantled a network of six fintech companies that laundered over $5 billion for the Primeiro Comando da Capital (PCC) between 2022 and 2025.