A joint operation between Cambodian and US anti-drug agencies dismantled a cryptocurrency money laundering network allegedly run on behalf of Mexico’s Sinaloa Cartel, with raids across multiple locations netting $7 million in seized crypto assets.
The operation, conducted from August 1 to August 5, targeted four locations in Phnom Penh and the neighboring Kandal province. Beyond the digital asset haul, authorities confiscated over 200 kilograms of illegal drugs, more than one metric ton of precursor chemicals, and shut down multiple drug laboratories and storage facilities. At least six Vietnamese nationals were among those arrested.
From fentanyl to USDT: the cartel’s digital pivot
Meas Vyrith, Secretary-General of Cambodia’s National Authority for Combating Drugs, confirmed the network used cryptocurrency to conceal proceeds from drug trafficking. The US Drug Enforcement Administration collaborated in the investigation, continuing a pattern of cross-border enforcement actions targeting cartel crypto operations.
The Sinaloa Cartel has been designated a “foreign terrorist organization” by the Trump administration, a classification that carries severe legal consequences for anyone providing material support. The cartel has also been the subject of US sanctions since 2023, including sanctions specifically targeting crypto wallet addresses tied to laundering operations.
