protos.com
FIFA World Cup organizers are reportedly considering moving this year’s tournament out of Mexico after the death of a crypto-laundering Mexican cartel kingpin led to a wave of violence from his supporters.
Nemesio Oseguera Cervantes, otherwise known as “El Mencho,” ran the Jalisco New Generation Cartel (CJNG) and was killed on Sunday during clashes between his organization and Mexican authorities.
The 59-year-old was reportedly injured during a firefight in the town of Tapalpa, and died while being transported to Mexico City.
His death resulted in an outpouring of violence from supporters. This included the burning of vehicles and buildings across the country, including in Guadalajara, a scheduled host of this summer’s World Cup.
As a result, rumours began to circulate that the city could be pulled from the tournament’s list of venues. Indeed, the host of Ticket Talk, Scott Friedman, claims a contact within FIFA informed him that games will be moved out of Mexico if the situation doesn’t improve in the next week or two.
Bitcoin investor and private fund founder Mike Alfred also claimed that “credible chatter” informed him that the cartel violence has led FIFA to consider moving games slated to take place in Mexico to the US and Canada.
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The violence has led to countries issuing warnings against travelling to affected regions of Mexico, and the US warning its citizens in the Jalisco region to seek shelter and stay inside.
FIFA is yet to publicly comment on the situation in Mexico. Protos has reached out to FIFA for comment and will update this piece should we hear back.
El Mencho laundered drug funds with crypto brokers
Cervantes founded the CJNG after working his way up the cartel ranks, killing rivals along the way. It was a notoriously violent, heavily armed organization that has been responsible for numerous massacres.
The drug lord was designated as a Kingpin in 2015 and his drug trafficking enterprise was recognised as one of the most powerful criminal groups in Mexico.
The US reward for information leading to his arrest was set at $15 million.
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Studies led by TRM Labs found that the CJNG has been utilizing crypto to convert drug funds into stablecoins. It was then sent to various wallets, withdrawn from exchanges, or spent as crypto.
In 2022, the Drug Enforcement Administration reportedly discovered that the CJNG had used Binance to move up to $40 million worth of cryptocurrency made through its cocaine and methamphetamine sales.
A Mexican broker was sentenced to eight years in prison for organizing a series of crypto laundering hubs across the US that took cash from the CJNG’s drug sales and converted it into crypto.
TRM Labs has also documented how Chinese money laundering brokers help out these cartels, as well as Chinese suppliers that sell them drug-related chemicals in exchange for crypto.