Criminal groups across Latin America are increasingly leveraging cryptocurrencies not only for money laundering but also as profit-generating investments, according to recent law enforcement operations and intelligence reports. The trend reflects how digital asset adoption in the region has created new opportunities for illicit financial activity.
Cryptocurrency mining has become a particularly attractive method for cartels seeking to legitimize illicit earnings. Mexican and Brazilian police have dismantled mining complexes allegedly operated by criminal organizations including the Brazilian Comando Vermelho and the Mexican Cartel Jalisco Nueva Generación. According to a former Brazilian Federal Police agent, mining provides advantages for criminal actors: cryptocurrencies obtained through mining can be associated with a legitimate activity, creating additional challenges when tracing financial assets.
Beyond mining, Latin American criminal organizations have built networks of financial intermediaries to move cryptocurrencies through ostensibly legal channels. A major operation dismantled a network of six fintech companies that laundered over $5 billion for the Primeiro Comando da Capital between 2022 and 2025. In June, the Trump Administration designated the PCC as a Foreign Terrorist Organization and a Specially Designated Global Terrorist. Other groups such as Tren de Aragua have been implicated in similar schemes.
The scope extends internationally. A fintech company managed by Chinese nationals in Brazil allegedly facilitated over $50 billion in money laundering for online gambling operators before being dismantled. Investigators have also identified connections between cartels and terrorist organizations including Hezbollah and al-Qaeda, heightening concerns about the integration of domestic and foreign criminal networks.
Experts emphasize the need for enhanced regulatory oversight. Recommendations include strengthening licensing and oversight processes, monitoring transactions in real time, increasing scrutiny of over-the-counter brokers and shell companies, enhancing international cooperation, and accelerating the freezing and seizure of digital assets.
