According to the UNODC, Mexican and Colombian drug cartels are increasingly using cryptocurrency in their illegal activities.
According to a recent investigation, some of Mexico’s most known drug cartels are increasingly using bitcoin for their illegal operations. Jalisco New Generation Cartel and Sinaloa Cartel are two of these organizations.
Drug lords are turning to Bitcoin.
Despite their myriad benefits and supporters, cryptocurrencies have detractors. Those who make this assertion frequently allege that criminals utilize bitcoin and altcoins for illegal operations such as drug trafficking, money laundering, terror financing, and so on.
The United Nations Office on Drugs and Crime (UNODC) stated in its most recent report that digital assets have become an appealing financial instrument for several Mexican and Colombian gangs.
The CIA described how these gangs use cryptocurrency in their operations. To begin, the drug revenues are divided into little payments in order to elude controls. The cartels then use it to acquire modest quantities of bitcoin, “obscuring the origin of the money and allowing them to pay associates around the world.”
Jalisco New Generation Cartel and Sinaloa Cartel are two of the criminal organizations listed. The latter is one of the world’s major drug trafficking organizations. It was managed for decades by the legendary Joaquin “El Chapo” Guzman, who is now serving a life term in a US Federal prison.
According to the UNODC, both Mexican and Colombian organized crime groups are “growing their usage of virtual money due to the anonymity and speed of transactions.” It is worth emphasizing, however, that the blockchain of bitcoin is completely transparent, and all transactions are recorded on the digital ledger. As a result, anyone with Internet access can view them.
Having said that, the nature of BTC makes it a highly dubious instrument for those attempting to facilitate unlawful financial activities.
Cash, on the other hand, remains the most commonly utilized payment method in dirty money activities such as prostitution, the purchase of firearms, and the purchase of drugs.
Mexican Crypto Exchanges Have Ties to the Jalisco Drug Cartel
The Financial Intelligence Unit of Mexico (FIU) discovered 12 bitcoin trading venues that operate without legal license last summer.
Following extensive investigation, officials suspected that the trading places were linked to criminal organizations, notably the drug cartel Jalisco Nueva Generación. The FIU’s director, Nieto Castillo, stated:
“A significant problem will be to investigate cryptocurrencies and their connections to criminal organizations.” “I am struck by the fact that several cryptocurrency platforms have been built in several municipalities around the state of Jalisco.”