Federal prosecutors have unsealed an indictment charging two Chinese nationals with operating a years‑long money‑laundering network that allegedly moved drug proceeds for major transnational cartels, including the Sinaloa Cartel and the Cartel de Jalisco Nueva Generación.
According to the U.S. Department of Justice, the indictment—returned in April 2025 and unsealed on May 22, 2026—names Ruhuan Zhen and Hongce Wu as the primary defendants. Both individuals remain at large.
Court documents state that the conspiracy operated from at least November 2016 through April 2025. During that period, investigators say the defendants and their co‑conspirators used a range of clandestine financial techniques to move large volumes of narcotics proceeds. These methods included mirror transfers, foreign bank accounts, encrypted communication applications, trade‑based money laundering, and a serial‑number verification system designed to confirm the authenticity of bulk cash.
Prosecutors allege the network spanned multiple regions, with activity across the United States, Mexico, Latin America, China, and other countries. The funds were tied to the importation and sale of illegal narcotics, including cocaine and fentanyl.
The investigation was led by the Drug Enforcement Administration’s Special Operations Division, with support from numerous domestic field offices and international DEA offices in Bogotá and Dubai. The case is part of Operation Take Back America, a federal initiative targeting cartel financial infrastructure.
If convicted of conspiracy to commit money laundering, each defendant faces a maximum sentence of 20 years in federal prison. Sentencing would be determined by a federal district court judge under U.S. Sentencing Guidelines.
Sources
- U.S. Department of Justice
- South China Morning Post