El Mencho Killed: CJNG Leader’s Death Highlights Cartel’s Growing Use of Cryptocurrency

Nemesio Rubén Oseguera Cervantes, widely known as “El Mencho,” one of the world’s most wanted drug lords and leader of the Jalisco New Generation (CJNG) cartel, was killed during a Mexican military operation on Sunday. His death has sparked widespread violence across Mexico, with reports indicating unrest in at least 20 states as cartel members blocked highways and set vehicles and businesses on fire.

El Mencho led CJNG, a criminal organization formed in 2009 that rapidly became one of the most powerful and violent drug cartels in Mexico. According to the US Department of State, CJNG developed extensive cocaine, heroin, methamphetamine, and fentanyl trafficking operations, particularly targeting the United States. In February 2025, the US officially designated CJNG as a Foreign Terrorist Organization under Section 219 of the Immigration and Nationality Act. Authorities had previously offered a $15 million reward for information leading to El Mencho’s capture.

Beyond the immediate security impact, attention is turning to CJNG’s financial infrastructure and its increasing use of cryptocurrency for money laundering and cross-border transactions. While digital assets like Bitcoin (BTC), Ethereum (ETH), Monero (XMR), and Tether (USDT) are widely used for legitimate purposes, law enforcement agencies have identified cases where Mexican cartels used crypto to move illicit funds.

Reports from Reuters as early as 2020 noted that major cartels, including CJNG and the Sinaloa Cartel, were incorporating Bitcoin into money laundering schemes. In 2024, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) revealed that Mexican transnational criminal organizations used virtual currencies to purchase fentanyl precursor chemicals from China. Blockchain analytics firms such as Chainalysis and TRM Labs later found that suspected Chinese suppliers received over $37 million in cryptocurrency between 2018 and 2023, with CJNG identified among key buyers.

Investigators also highlighted advanced laundering tactics, including peel chains, cross-chain swaps, and cash-outs through Chinese exchanges and money laundering networks. In 2025, Chinese money laundering networks accounted for roughly 20% of known cryptocurrency-related laundering activity. Recent US indictments against individuals accused of converting millions in cartel cash into cryptocurrency underscore how digital assets have become embedded in organized crime operations.

Although El Mencho’s death marks a major development in Mexico’s fight against drug cartels, the sophisticated financial systems behind groups like CJNG remain deeply entrenched, technologically adaptive, and globally connected.