Cartels Use Crypto Mining as a New Tool for Laundering Illicit Funds
Crypto mining operations have become a tool for organized crime in Latin America, according to blockchain analytics firm Chainalysis. Mexican authorities recently uncovered a suspected illicit crypto mining site in the mountainous Tlaola area of Puebla state, seizing hundreds of graphics processing units and medium-voltage terminals.
The site was found tucked into the lush mountains of the Sierra Norte region and was equipped with 300 GPUs, 80 medium-voltage terminals, and eight satellite antennas. Officials are now investigating whether the operation stole electricity from a nearby hydroelectric dam to power its equipment.
Caio Motta, Chainalysis's Latin American specialist, said cartels often target areas with cheap electricity or organized crime influence, allowing groups to steal power outright and build large crypto mining infrastructure at minimal cost. The University of Cambridge's Bitcoin Electricity Consumption Index puts the cost of minting one bitcoin near $45,000.
Illicit cryptocurrency transactions worldwide surged past $154 billion in 2025, more than double 2024's total, according to Chainalysis data. Motta expects crypto-related crime to keep climbing as virtual currencies become easier to access globally.