El Mencho's Death Sparks Violence, Crypto Use Highlighted

The death of El Mencho, the leader of the Jalisco New Generation (CJNG) cartel, has sent shockwaves across Mexico. The killing has triggered a wave of violence in several states, with reports of blocked roads, torched vehicles, and businesses.

Regulators and researchers have been monitoring the CJNG's financial operations, which have become increasingly sophisticated over the years. One area of focus is the cartel's use of cryptocurrency for illicit purposes.

A report by Chainalysis found that suspected China-based chemical traders received more than $37.8 million in cryptocurrency between 2018 and 2023. The funds were used to purchase fentanyl precursor chemicals and equipment from suppliers in China.