Latin American Cartels Leverage Crypto to Launder Millions and Invest in Illicit Activities

Criminal groups in Latin America are not only using cryptocurrencies to launder money but are also actively investing in crypto assets to generate profits. According to a recent report, these organizations have turned to mining and other crypto investments to obscure the origin of their illicit earnings.

A recent operation by Mexican and Brazilian police dismantled mining complexes allegedly operated by criminal entities such as the Comando Vermelho and the Cartel Jalisco Nueva Generación, which have also been linked to crypto money laundering endeavors before. 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.'

Latam-based criminal organizations have also built 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 between 2022 and 2025. The PCC was designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT) in June.

Crypto has given these groups access to large international money laundering rings, including those of Russian and Chinese origin. For example, Golden Cat Processamento de Pagamento Ltda., a fintech managed by Chinese nationals in Brazil, allegedly operated as a money laundering scheme, facilitating services for online gambling operators. The network processed over $50 billion before being dismantled.