The United States has charged several individuals involved in money laundering in California, who are accused of transferring funds for the Sinaloa Cartel through financial intermediaries, large money transfers, cryptocurrency purchases, and collaboration with “illegal Chinese money exchanges.”
The US Department of Justice (DOJ) claims that this scheme laundered over $50 million from the sale of cocaine, methamphetamine, and fentanyl. Within the investigation, known as “Operation Fortune Runner,” charges have been filed against 24 individuals.
It is alleged that Edgar Joel Martinez-Reyes led the money laundering scheme by facilitating transactions between the Sinaloa Cartel and the “brokers” who assisted in the operation.
The money laundering methods involved the use of cryptocurrencies, precious metals, gemstones, and various bank accounts created by the accomplices.
A significant portion of the funds was transferred to Chinese brokers who engage in illegal transactions outside of China’s regulated financial system. There is a high demand for US dollars in China, and these brokers convert dollars into yuan without the funds leaving either country.
The cartel’s dollars are sold to individuals and entities in China who have a demand for the US currency. The money in China is then used to purchase chemicals and other materials for drug production and trafficking.
The use of cross-border intermediaries helps these networks launder money and avoid detection and confiscation.