Latin America Cartels Leverage Cryptocurrency to Launder Billions and Fund Terrorist Links
The rise of cryptocurrency adoption in Latin America has also brought a new set of challenges, as criminal organizations have taken advantage of this alternative financial system to launder money and generate profits. Recent operations by Mexican and Brazilian police have dismantled mining complexes allegedly operated by groups such as the Comando Vermelho and the Cartel Jalisco Nueva Generación, which have also been linked to crypto money laundering endeavors. The advantage of cryptocurrency mining for these groups is that it can be associated with a legitimate activity, making it harder to trace financial assets.
According to Dialogo Americas, these organizations have turned to mining and other crypto investments to obscure the origin of their illicit earnings. In addition, Latam-based criminal organizations have begun to build their own network of financial intermediaries to move cryptocurrencies in a 'legal way.' Operation Hidden Flow dismantled a network of six fintech companies that laundered over $5 billion for the Primeiro Comando da Capital (PCC) between 2022 and 2025.
Investigations have also identified links between terrorist organizations like Hezbollah and al-Qaeda and local cartels, raising alarms about the relevance of strengthening international coordination to tackle this ongoing integration. Financial organizations facilitating these crimes must be subject to stringent oversight controls, according to Caio Motta, Chainalysis' senior Solutions Architect for Latin America.