Archive · 7 Dec 2025
Global Crime Networks Exploit Underground Banks and Crypto
There are secret money systems in China that have been around for a very long time.
These systems help criminals, like drug cartels and hackers, move money around the world without getting caught.
They do this by trading money between different countries and using special internet money called cryptocurrency.
This helps them hide where the money comes from and where it goes.
Some of these criminals are even using social media to sell drugs and find new people to help them.
It's like a big, hidden money game that's hard for the police to stop.
Chinese Underground Banking Systems (CUBS) have evolved into a sophisticated network intertwined with global crime, operating outside traditional banking regulations.
North Korean state-sponsored hackers steal billions in cryptocurrency and launder funds to support weapons programs, circumventing global sanctions.
Mexican drug cartels, particularly Sinaloa and Jalisco, control the global fentanyl supply chain and generate approximately $154 billion in illicit proceeds.
Chinese underground bankers facilitate money laundering for cartels through a mirror exchange system, bypassing formal banking and using cryptocurrency for anonymous transactions.
Criminal organizations use social media platforms to recruit associates, find customers, and sell drugs, relying on a global illicit financial network for money laundering.
- Who
- Chinese underground bankers, North Korean hackers, Mexican drug cartels, Russian crime syndicates
- What
- Global crime networks exploiting underground banks and cryptocurrency for money laundering
- When
- Ongoing, with historical roots tracing back to the Tang Dynasty
- Where
- Global operations, with significant activities in China, North Korea, Mexico, and the United States
- Why
- To facilitate illicit financial transactions, evade currency regulations, and fund criminal activities
- Chinese Underground Banking Systems (CUBS)
- Traces back to Tang Dynasty, operates outside traditional banking regulations
- North Korean Hackers
- State-sponsored, steal billions in cryptocurrency, launder funds for weapons programs
- Mexican Drug Cartels
- Sinaloa and Jalisco Cartels, control fentanyl supply chain, generate $154 billion in illicit proceeds
- Mirror Exchange System
- Facilitates money laundering between cartels and Chinese individuals, bypasses formal banking
- Cryptocurrency
- Used for rapid, anonymous cross-border transactions, enables trustless network for money laundering