The U.S. Department of Justice unsealed an indictment on May 22, 2026, charging two Chinese nationals—Ruhuan Zhen and Hongce Wu—with conspiracy to commit money laundering tied to the Sinaloa Cartel and the Cartel de Jalisco Nueva Generacion (CJNG).
Prosecutors allege that Zhen and Wu operated a sophisticated money laundering scheme spanning nearly a decade, from at least November 2016 through April 2025. The indictment details the use of mirror transfers, foreign bank accounts, encrypted communications applications, a serial-number verification system, and trade-based money laundering to move illicit funds associated with these transnational criminal organizations.
The scheme operated across the United States, Mexico, Latin America, China, and other regions, utilizing narcotics proceeds or funds purportedly derived from cocaine and fentanyl trafficking. Zhen and Wu were indicted by a federal grand jury in Alexandria, Virginia on April 24, 2025, and remain at large. If convicted, each faces up to 20 years in federal prison.
The Department of Justice stated the case was investigated by the DEA’s Special Operations Division, Bilateral Investigations Unit, with assistance from multiple DEA offices and international units. The matter is part of Operation Take Back America, a federal initiative targeting cartels, transnational criminal organizations, illegal immigration, and violent crime.
According to FinCEN data reviewed through January 2024, Chinese money laundering networks were implicated in approximately $312 billion in suspicious transactions over five years. These networks facilitate illicit financial flows for Mexico-based cartels—including those designated as foreign terrorist organizations—while also supporting fraud, human trafficking, and smuggling operations.
The Drug Enforcement Administration identifies the Sinaloa Cartel and CJNG as primary drivers of the U.S. synthetic drug crisis, with both cartels designated foreign terrorist organizations in February 2025. CJNG is a major supplier of illicit fentanyl to the United States and employs Chinese money laundering networks, cryptocurrency exchanges, bulk cash smuggling, and trade-based laundering to move drug-related funds.
The indictment represents part of a broader federal effort to disrupt cartel financial infrastructure. Prosecutors note that every dollar laundered directly fuels the next shipment of dangerous narcotics into American communities.
