Illicit proceeds move through fintechs, OTC crypto brokers, and exchanges, enabling rapid cross-border movement and complicating tracing of funds, with foreign actors including Chinese money laundering networks and elements tied to Russia, Hezbollah, and al-Qaeda increasingly involved.

In Brazil, the Red Command mining operation was uncovered in Rio de Janeiro, linking illicit crypto mining to street gangs and remote operation from the power grid; six fintechs in Brazil processed about $5.1 billion for criminal groups between 2022 and 2025.

Colombia's Clan del Golfo laundered roughly $46 million through crypto exchanges and shell companies, while Chile’s Tren de Aragua is alleged to have laundered over $13.5 million using Bitcoin and international transfers.

The broader trend shows a shift from pure laundering to generating legitimate-appearing income through mining and specialized services, creating a more complex, interlinked financial landscape for law enforcement.

Latin American criminal groups are using cryptocurrencies not just for laundering but also for mining and revenue generation via specialized laundering networks, expanding cross-border financial capabilities.

The report argues criminal ecosystems are global and resilient, demanding tighter licensing, real-time transaction monitoring, closer scrutiny of OTC brokers and shell companies, stronger international cooperation, and faster freezing and seizure of digital assets.

Brazilian authorities identified Golden Cat Processamento de Pagamento Ltda., a fintech run by Chinese nationals, as a major hub processing over $50.8 billion in funds from illegal online gambling redistributed via shell companies and overseas transfers.

Terrorism and extremist networks appear connected to crypto-laundering activities, with cases linking to al-Qaeda facilitators and Hezbollah-associated networks, including a notable transaction involving leaders tied to these groups.