WASHINGTON — In a concerted move to disrupt the financial mechanisms underpinning Mexico’s most violent drug cartels, the US Justice Department is focusing its enforcement on money brokers who facilitate the transfer of illicit profits. Prosecutors contend that amid stepped-up law enforcement efforts, these intermediaries are increasingly channeling proceeds from narcotics sales through cryptocurrency transactions originating in American cities, routing funds directly to cartel leaders across the border in Mexico.
The cases involving four defendants recently extradited from Mexico to the United States provide insights into the clandestine money laundering networks that underpin organizations like the Jalisco New Generation Cartel and other violent entities. These networks enable a continuous flow of dangerous drugs into US communities. The prosecutions underscore the Justice Department’s commitment to intensify pressure on cartels, aiming to preempt further evolution of their sophisticated money laundering strategies that evade detection in cross-border financial flows.
Rather than concentrating on lower-level drug traffickers, prosecutors emphasize a strategic target: alleged money brokers. They view this segment as a vital choke point essential for sustaining cartel operations, especially as enforcement constricts more visible trafficking routes.
A. Tysen Duva, assistant attorney general overseeing the Justice Department’s criminal division, stressed in an interview that "cutting off the money flow directly harms the cartels, and that is the core objective."
Since the commencement of President Donald Trump’s second term, the Mexican government has surrendered over 90 high-ranking cartel-affiliated individuals across three separate transfers. These extraditions are a focal point of ongoing legal discussions within Mexico. The individuals transferred face US charges involving drug trafficking, human smuggling, and money laundering.
Senior officials within the Justice Department indicate that beyond serving as a deterrent, these extraditions could facilitate the prosecution of additional senior cartel figures if the defendants cooperate. This arrangement could enable prosecutors to penetrate higher tiers of cartel leadership. Under the current Republican administration, the department has reorganized the Criminal Division to merge narcotics prosecution with anti-money laundering expertise, reflecting a strategic emphasis on undermining the financial structures that support cartel operations.
The latest extraditions include individuals identified as Mexico-based money brokers who oversee the collection and transfer of drug proceeds. According to court documents, these individuals receive commissions on the funds directed back to the cartels. Their operations encompass arranging cash pickups across multiple US cities and employing concealment tactics to move money across the border. Notably, due to tightening law enforcement controls on traditional money smuggling methods, these brokers increasingly utilize digital assets to move illicit funds.
Duva elaborated that prosecutors seek detailed knowledge on both distribution and laundering mechanics—including participant identification and illicit money flow through US banking channels. He described traditional bulk cash smuggling as a longstanding practice but also highlighted a newer trend involving the conversion of cash into cryptocurrencies followed by trading to obscure the proceeds.
Among those facing conspiracy charges related to money laundering in federal court in Kentucky are Eduardo Rigoberto Velasco Calderon, Eliomar Segura Torres, Manuel Ignacio Correa, and Cesar Linares-Orozco. While Linares-Orozco’s legal representative declined to comment, court documents do not list attorneys for the other defendants.
The January extradition of 37 cartel-linked individuals marked the third such transfer during President Trump’s second term. Experts interpret these actions by Mexican authorities as responses to rising threats from the US administration regarding potential military intervention against cartels.
Legal representatives and relatives of extradited cartel members have accused Mexico of violating legal procedures by transferring individuals without formal extradition orders. Conversely, the Mexican government maintains these actions are lawful and undertaken in the interest of national security.