Latam Cartels Tap Crypto to Expand Their Illicit Workflows

Key Takeaways

• Latam cartels operate crypto mining farms, making illicit funds appear legitimate to evade law enforcement.
• Criminal groups built fintech networks to launder over $50B in crypto with international rings.
• Rising terror links prompt calls for tighter fintech oversight and faster digital asset freezes in Latam.

Crypto Adoption in Latam Gives Criminals Extra Tools

The rise of cryptocurrencies in Latam, a region that has become one of the most vibrant regarding digital asset adoption, has also allowed criminals to take advantage of this alternative financial system and the processes associated with it.

According to Dialogo Americas, as the utilization of cryptocurrencies by criminal actors is mainly linked to money laundering, these organizations have turned to mining and other crypto investments to obscure the origin of some of their illicit earnings.

Evidence of this is found in recent operations executed by Mexican and Brazilian police, which have dismantled mining complexes allegedly operated by criminal entities such as the Brazilian Comando Vermelho and the Mexican Cartel Jalisco Nueva Generación, which have also been linked to crypto money laundering endeavors before.

Álvaro Marques, a former Brazilian Federal Police agent, explained why mining is attractive for these groups. “The advantage is that cryptocurrencies obtained through mining have a technical origin that can be associated with a legitimate activity. This creates additional challenges when trying to trace financial assets,” he declared.