DEA and Cambodia seize $7 million in Sinaloa Cartel crypto network

Cambodian and U.S. anti-drug agencies seized about $7 million in cryptocurrency linked to Mexico’s Sinaloa Cartel after coordinated raids in Phnom Penh and Kandal province from Aug. 1 to 5, officials said Friday.

The Cambodian operation also resulted in the seizure of more than 200 kilograms (440 pounds) of illegal drugs and more than one metric ton (2,200 pounds) of precursor chemicals used in drug production.

The investigation involved Cambodian anti-drug police working with the U.S. Drug Enforcement Administration, highlighting growing cooperation between the two countries as authorities investigate international criminal networks operating through Cambodia.

“Collaborative efforts involving DEA offices in Phnom Penh and New Jersey successfully uncovered a local network laundering cryptocurrency on behalf of the Sinaloa Cartel,” the U.S. Embassy said in a statement Thursday.

The findings point to the increasing use of digital assets as part of international financial networks used to move proceeds from illicit activities.

Sinaloa Cartel expands financial reach into Southeast Asia

The investigation comes as authorities examine the growing connections between Latin American drug organizations and criminal networks operating across Southeast Asia.

The Sinaloa Cartel has become one of the major producers of synthetic opioid fentanyl, which has been linked to tens of thousands of overdose deaths in the United States each year. The organization has also obtained precursor chemicals from countries including China, which are then used to manufacture fentanyl in Mexico before the drug is smuggled into the United States.

The Cambodian investigation suggests that the Sinaloa Cartel’s activities may extend beyond the production and trafficking of narcotics, with financial operations also reaching Southeast Asia.

A July report from the United Nations Office on Drugs and Crime said transnational organized crime groups from outside Southeast Asia have become significant criminal actors in the region, particularly in the trafficking of methamphetamine and cocaine.

The report also identified a broader role for Southeast Asia in the operations of Latin American criminal organizations.

It said Latin American cartels’ engagement with Southeast Asia “appears to extend beyond drug and precursor chemical supply, and the region now functions as a supply, financial management, and logistics hub for multiple Latin American criminal organizations.” — United Nations Office on Drugs and Crime, July report

The findings provide wider context for the Cambodia operation, where authorities say cryptocurrency was allegedly used to facilitate money laundering connected to the Sinaloa Cartel.

Cambodia intensifies crackdown on organized crime

Cambodia has increasingly become a focus of international law enforcement efforts because of the presence of organized criminal groups, including Chinese-led networks associated with large-scale online scam operations.

Those groups have operated scam centers that authorities say have defrauded victims around the world of billions of dollars. Thousands of foreign workers have also been employed in conditions described as slave-like.

Over the past year, Cambodian authorities have intensified their campaign against these operations, shutting down scam centers and arresting alleged criminal leaders. Some of those targeted had also established apparently legitimate financial institutions, according to the report.

The country’s role as a regional transit point for narcotics has added another layer to the law enforcement challenge. Cambodia has traditionally been associated with the movement of methamphetamine originating in the Golden Triangle, where Thailand, Myanmar and Laos meet.

The discovery of a network allegedly connected to the Sinaloa Cartel illustrates how those existing criminal infrastructures can intersect with organizations based outside the region.

The cryptocurrency seizure is particularly significant because digital assets can allow criminal groups to transfer value across borders without relying exclusively on traditional financial channels.

However, authorities have not publicly detailed the specific cryptocurrency transactions involved, the identities of all suspects arrested during the raids or the precise amount of money allegedly laundered through the Cambodian network.

Sinaloa Cartel linked to earlier crypto laundering case

The latest investigation is not the first time U.S. authorities have linked the Sinaloa Cartel to cryptocurrency-related money laundering networks.

In 2024, U.S. federal prosecutors alleged that the Sinaloa Cartel worked with Chinese underground banking organizations in the United States to launder more than $50 million generated through the sale of fentanyl, cocaine and other illegal drugs.

That case highlighted the increasingly international character of financial networks supporting narcotics trafficking, with criminal organizations relying on partnerships that cross geographic and organizational boundaries.

The Cambodian investigation adds Southeast Asia to that broader picture. Authorities say the network uncovered in Phnom Penh and Kandal province used cryptocurrency to launder money for the Sinaloa Cartel, while the wider operation also uncovered drugs, precursor chemicals and facilities associated with illicit production and storage.

The operation also comes amid Cambodia’s broader crackdown on transnational organized crime, particularly networks that have used the country as a base for illicit financial and trafficking activities.

While the investigation has resulted in seizures and arrests, authorities have not disclosed the full scope of the alleged Sinaloa Cartel network in Cambodia or whether further arrests are expected.

Source; Ap News