(NewsNation) — Two Chinese nationals in Virginia face federal money-laundering conspiracy charges connected to two of the world’s most notorious and dangerous Mexican drug cartels, federal prosecutors announced Friday.
Ruhan Zhen and Hongce Wu have been charged by the Department of Justice, accusing the pair of conspiring to launder money in connection with transnational criminal organizations, including the Sinaloa and Jalisco New Generation cartels. Both groups have been designated as foreign terrorist organizations by the Trump administration.
Zhen and Wu are alleged to have worked with co-conspirators to use a series of secretive methods, including mirror transfers, encrypted communications applications, a serial-number verification system and trade-based money laundering, to launder substantial amounts of drug proceeds on behalf of the cartels, federal prosecutors alleged in court documents.
The illegal activity allegedly took place between 2016 and 2025 and involved operatives working across the United States, Mexico, Latin America and China. The drug proceeds allegedly being laundered by the men stemmed from the importing and sale of illicit drugs, including fentanyl, court documents stated.
Zhen and Wu were indicted in late April but have not been taken into federal custody as of Friday. If convicted, Zhen and Wu face up to 20 years in prison.
The indictments are the latest cases involving Chinese nationals operating in the U.S.
In March, two Chinese pharmaceutical firms and six Chinese nationals were indicted in Ohio for allegedly conspiring to traffic fentanyl into the U.S.
Previous cases have also taken place in South Carolina, where five homes were seized by federal officials in connection with money laundering, drug trafficking and a terrorism scheme involving Chinese and Mexican companies.
Federal agencies previously reported Chinese and Mexican drug rings are taking over the illegal marijuana industry.
Over the past 10 years, transnational criminal organizations have exploited state laws across the country when it comes to the legalization of marijuana, leading to criminal groups taking over the black market.
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