Cambodia, US Uncover Crypto Laundering Network Tied to Sinaloa Cartel

Cambodian and American law enforcement have broken up a criminal network that allegedly used cryptocurrency to launder money for Mexico's Sinaloa Cartel, officials confirmed on Friday.

Meas Vyrith, secretary-general of Cambodia's National Authority for Combating Drugs, said authorities confiscated roughly $7 million in digital currency linked to the cartel, which the Trump administration has designated a foreign terrorist organization.

Working with the US Drug Enforcement Administration, Cambodian anti-drug police conducted raids at four locations in Phnom Penh and neighboring Kandal province between August 1 and 5. The operation led to multiple arrests and the seizure of assets, drug laboratories, and storage facilities.

Authorities also recovered more than 200 kilograms of illegal drugs and over one metric ton of precursor chemicals used to manufacture them.

The US Embassy in Phnom Penh said the collaborative effort, involving DEA offices in Phnom Penh and New Jersey, successfully uncovered a local network laundering cryptocurrency on behalf of the Sinaloa Cartel.

The cartel has become a major producer of fentanyl, a synthetic opioid blamed for tens of thousands of US overdose deaths annually. It has sourced precursor chemicals, including from China, to manufacture the drug in Mexico and smuggle it across the border.

Cambodia has traditionally served as a transit point for methamphetamine from the Golden Triangle region. In recent years, it has also become a hub for Chinese-led organized crime, particularly scam centers that have defrauded victims worldwide and held thousands of foreigners in forced labor.

A July UN report noted that Latin American cartels now use Southeast Asia as a supply, financial management, and logistics hub, extending beyond drug and precursor chemical trade. In 2024, US prosecutors said the Sinaloa Cartel had worked with Chinese underground banks to launder over $50 million from drug sales.