Mexican drug cartels are increasingly turning to cryptocurrency mining and digital assets as they seek new ways to generate revenue, conceal illegal proceeds, and finance criminal activities.
The growing link between organised crime and cryptocurrency was highlighted after Mexican authorities uncovered a clandestine crypto-mining facility in Tlaola, a town in Puebla’s Sierra Norte mountains, according to Reuters.
Federal authorities, the Mexican Navy and state police reportedly seized about 300 graphics processing units, 80 medium-voltage terminations, a transformer and eight satellite antennas during the operation.
The facility also had extensive electricity infrastructure, with the power-intensive operation believed to have been connected illegally to the electricity grid near the Presa de Necaxa hydroelectric dam.
Although the operation discovered in Tlaola was relatively small, it was reportedly the fourth clandestine cryptocurrency farm uncovered by Mexican authorities in the area since early 2025.
A Mexico-based security analyst cited by Reuters said the discoveries demonstrated the increasing sophistication of cartel operations, particularly their ability to incorporate technology into their criminal networks.
The use of cryptocurrency by organised crime is not limited to mining. Blockchain analytics firm Chainalysis, according to Reuters, estimated that illicit cryptocurrency transactions increased from $59bn in 2024 to $154bn last year.
The company attributed part of the increase to sanctions evasion by governments, while criminal organisations in South America are also increasingly turning to digital currencies to move and conceal illegally obtained money.
Cryptocurrency mining can provide another layer to such operations because criminals can obtain digital assets while allegedly avoiding the cost of electricity by illegally tapping into power supplies.
The latest facility was reportedly located close enough to surrounding communities for its operations to be noticed. Two residents from neighbouring communities told Reuters that the noise generated by the equipment, including cooling systems and transformers, could be heard from about one kilometre away.
The facility was also said to be only about two kilometres from the nearest village.
The location of the other three recently discovered mining facilities in the region was also linked to the hydroelectric dam, highlighting the importance of access to large amounts of electricity for such operations.
Tlaola has a population of about 20,000 people, making unusual levels of noise and electricity consumption more noticeable despite efforts to keep the facilities concealed.
Remote communities have become attractive locations for clandestine mining operations because of access to relatively cheap electricity and the influence of organised crime groups in some areas.
The Cartel Jalisco Nueva Generación and its armed wing, La Barredora, are reported to have a strong presence in Puebla.
Mexican cybersecurity firm SILIKN estimated that the use of cryptocurrency mining to launder illicit funds in Mexico increased by at least 55.8 per cent last year.
Among the cartels reportedly involved are the Cartel de Sinaloa and CJNG, which have been linked to mining operations involving cryptocurrencies including Bitcoin, Monero and Tether.
The development reflects a broader expansion of cryptocurrency-related criminal activity beyond Mexico. Reuters has previously reported on authorities uncovering illegal mining operations in countries including Brazil, the United States and Thailand.
As digital currencies become increasingly integrated into criminal financial networks, analysts expect cryptocurrency-related crime to continue rising in the coming years.
