Mexican authorities have identified an illegal cryptocurrency farm that was used for money laundering for drug cartels. This farm was located in the Sierra Norte region of central Mexico, and police encountered a small building with a lot of noise while patrolling, which was illegally using electricity from a nearby hydroelectric system.
Complex Money Laundering Operations
This building was illegally using powerful computers to produce cryptocurrency. David Sucido, a security analyst, noted that this operation indicates the cartels' access to "new levels" of complexity in their activities. Given that the largest cost of cryptocurrency mining is the electricity required to run the computers, it appears that cartel members have made significant profits by stealing electricity from the nearby area.
Read more: Increased Financial Pressure from the U.S. on Iranian Money Launderers
Growing Trend of Cryptocurrency Use
Cartels are increasingly turning to cryptocurrency, as this type of currency is much harder to trace than traditional currencies and has higher security levels. In 2022, a major drug cartel laundered millions of dollars using a popular cryptocurrency exchange application.
Reports indicate that these cartels used cryptocurrency trading forums for transactions and exchanged cryptocurrency for cash. New trends and unconventional methods have caught the attention of cartels as a reaction to sanctions and pressures from the U.S. government.
As drug cartels continue to strengthen their arsenals, they have equipped themselves like private militias using advanced weapons and even tanks. In this context, cartel members have gained access to anti-tank weapons, rocket grenades, and even tanks. A war between cartels for control over the multi-billion dollar drug industry is underway.
Read more: How Billions of Dollars of Iranian Money Are Transferred in American Banks · Freedom in the Currency Market; Iran Allows Traders to Bring Their Earnings Home
