Mexico’s Drug Cartels Are Moving Deeper Into Crypto With Hidden Mining Farms: Report

Mexican authorities have seized a suspected cryptocurrency mining operation in the mountains of Puebla, where investigators are examining whether virtual assets generated at the site were used to disguise money connected to illegal activity.

The operation in Tlaola, in Puebla's Sierra Norte region, was carried out jointly by Mexico's federal attorney general's office, the Navy and state security authorities. Officers found a pedestal transformer, about 80 medium-voltage terminals, eight satellite internet antennas and nearly 300 specialized computing units operating at the property, the Puebla state government said.

Authorities said the property and equipment were placed in government custody while investigators determine whether cryptocurrency generated by the operation was used to give an appearance of legitimacy to funds connected to illicit activities. No specific cartel has been publicly identified as the owner or operator of the Tlaola facility.

The discovery nevertheless comes as Mexican criminal organizations make increasing use of cryptocurrency to move money, purchase supplies and launder drug proceeds. The U.S. Treasury Department's 2026 National Money Laundering Risk Assessment says both the Sinaloa Cartel and the Jalisco New Generation Cartel, or CJNG, use digital assets to purchase precursor chemicals, launder and repatriate funds and carry out other transactions.