Joint operations between Cambodian anti-drug agencies and the U.S. Drug Enforcement Administration have identified and disrupted a network used to launder cryptocurrency for the Sinaloa Cartel, according to officials from both countries who announced the findings on Friday.
Cambodian National Authority for Combating Drugs Secretary-General Meas Vyrith stated that approximately $7 million in cryptocurrency connected to the cartel was seized during the operation. The coordinated effort resulted in multiple arrests and the confiscation of various assets, including drug laboratories and storage facilities. Law enforcement also recovered more than 200 kilograms of illegal drugs and over one metric ton of precursor chemicals used in drug manufacturing. Raids conducted across Aug. 1 to 5 targeted four locations in Phnom Penh and the neighboring Kandal province.
The U.S. Embassy confirmed that DEA offices based in Phnom Penh and New Jersey collaborated to uncover the local money laundering operation. The Sinaloa Cartel has emerged as a significant producer of fentanyl, a synthetic opioid responsible for substantial overdose deaths annually in the United States. The organization has sourced precursor chemicals, including from China, to manufacture fentanyl in Mexico before trafficking it across the border.
Cambodia’s role in international drug trafficking has evolved significantly. While traditionally serving as a transit hub for methamphetamine from the Golden Triangle region spanning Thailand, Myanmar and Laos, the country has increasingly become a center for organized crime operations. Chinese-led criminal syndicates have established substantial operations there, primarily operating scam centers that have defrauded victims worldwide of billions of dollars.
Recent UN research indicates that multiple transnational organized crime groups from outside Southeast Asia now view the region as a crucial hub for supply, financial management and logistics. A July report from the United Nations Office on Drugs and Crime documented Latin American cartels’ expanded involvement in Southeast Asia beyond traditional drug trafficking. Earlier investigations revealed that the Sinaloa Cartel previously collaborated with Chinese underground banking networks in the United States to process more than $50 million in proceeds from drug sales.
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