Federal prosecutors have charged two Chinese nationals living in Virginia with conspiring to launder money for major Mexican drug cartels, according to court documents unsealed Friday.
Ruhan Zhen and Hongce Wu face money-laundering conspiracy charges tied to the Sinaloa and Jalisco New Generation cartels, the Department of Justice announced. Both organizations were designated as foreign terrorist organizations by the Trump administration.
The pair allegedly worked with co-conspirators to move drug proceeds using methods such as mirror transfers, encrypted communication apps, a serial-number verification system and trade-based money laundering, prosecutors said in the filings.
The alleged scheme ran from 2016 through 2025 and involved operatives in the United States, Mexico, Latin America and China, court documents state. The funds reportedly came from the import and sale of illicit drugs, including fentanyl.
Zhen and Wu were indicted in late April but remain at large as of Friday, according to federal authorities. Each faces up to 20 years in prison if convicted.
The case adds to a string of recent federal actions involving Chinese nationals accused of participating in drug-related financial crimes inside the United States.
In March, two Chinese pharmaceutical companies and six Chinese nationals were indicted in Ohio on charges of conspiring to traffic fentanyl into the country, officials said.
Separate investigations in South Carolina resulted in the seizure of five homes connected to alleged money laundering, drug trafficking and a terrorism scheme involving Chinese and Mexican entities, according to earlier reports.
Federal agencies have previously noted that Chinese and Mexican criminal networks have moved into the illegal marijuana market in states where recreational use has been legalized, exploiting gaps in regulation.
Transnational criminal organizations have taken advantage of varying state marijuana laws over the past decade, leading to increased black-market activity, the reports indicated.
Prosecutors described the alleged operation as part of broader efforts by cartels to conceal profits from fentanyl and other narcotics sales across multiple continents.
Officials said the use of encrypted apps and mirror transfers allowed the defendants to move funds without traditional banking trails, making detection more difficult for investigators.
The indictments remain the latest in a series of cases highlighting international links between Chinese operatives and Mexican cartels operating on U.S. soil.