The leader of one of the most dangerous criminal organizations in Latin America — the Jalisco New Generation Cartel (CJNG) Nemesio Oseguera Cervantes, known as El Mencho, was eliminated during a special operation by Mexican law enforcement on February 22, 2026. His organization was considered one of the most innovative in the use of digital financial technologies for criminal activities.
This is reported by Finway
Use of Cryptocurrency in the Drug Trade
For several years, CJNG actively integrated cryptocurrencies into its financial schemes. Based on research from TRM Labs and information from American law enforcement, it is known that the cartel transferred hundreds of millions of dollars through digital assets even before 2026. The criminals used cryptocurrency for cross-border transfers, converting drug profits, and circumventing banking controls. Stablecoins and Bitcoin played a significant role in these operations, providing speed and anonymity for transactions.
Reports emphasize that CJNG was one of the first in Mexico to extensively use cryptocurrencies for money laundering. It is known that the group utilized centralized exchanges, over-the-counter platforms, and crypto wallets linked to drug trafficking logistics networks. Such schemes allowed for faster international settlements and reduced dependence on traditional banks.
“The Jalisco New Generation Cartel used cryptocurrencies for transfers and money laundering.”
American investigators had already reported CJNG transactions amounting to tens of millions of dollars conducted through major crypto services in 2022. Some of these funds were transferred through multi-layered chains of intermediaries, significantly complicating the identification of the source of the money and the ultimate recipients. In 2023, a case was uncovered involving a broker who was converting and withdrawing cartel funds through cryptocurrency, simultaneously using cash, exchanges, and digital assets. During the arrest of this criminal, over $600,000 in cash was found in his vehicle.
Implications for Security and the Situation in Mexico
The elimination of El Mencho has already led to a new wave of violence in several Mexican cities. According to official reports, at least 25 members of the country’s National Guard have died as a result of clashes. Experts note that the death of the leader does not necessarily lead to the decline of CJNG, as the cartel’s structure and its financial instruments can function autonomously.
The use of cryptocurrencies has allowed CJNG not only to scale its operations but also to effectively mask the origin of funds, involving a wide range of intermediaries and technological platforms in the process. Although digital assets have not yet fully replaced traditional money laundering schemes, their role in criminal finance continues to grow.