The operation was facilitated through an underground banking system run by Chinese nationals residing in the United States.

The case, outlined in a 10-count superseding indictment, sheds light on the growing collaboration between Mexican cartels and Chinese citizens in the United States, and the intricate network they have constructed to finance drug operations and launder the profits. Drug Enforcement Administration Administrator Anne Milgram emphasized the emergence of a new criminal alliance between the Sinaloa cartel and Chinese nationals living in the US, specifically for money laundering purposes.

Leading the money laundering scheme was 45-year-old Edgar Joel Martinez-Reyes from East Los Angeles, who reportedly travelled to Mexico earlier this year to negotiate with Sinaloa cartel members and strike a deal involving individuals connected to the underground Chinese banking system.

US Attorney Martin Estrada described the symbiotic relationship between the Mexican cartels and the Chinese money launderers, stating that they have formed an organization that facilitates the transfer of millions of dollars in drug proceeds from the United States back to Mexico. Furthermore, wealthy Chinese nationals in America are given access to vast amounts of cash.

The investigation, code-named "Operation Front Runner," spanned four years from October 2019 to October 2023. It began with federal drug agents tracking multiple suspects, including Chinese nationals, as they collected bags of cash from Sinaloa cartel affiliates in and around Los Angeles.

During a law enforcement operation in May 2021, one of the defendants, Daniel Gonzalez, allegedly intentionally rammed his vehicle into a car driven by a DEA agent in an attempt to hinder the investigation and harm the officer. According to the indictment, Gonzalez was found in possession of 46 individually-wrapped bundles of cash totaling $598,110.

Authorities have confirmed that at least 22 of the defendants have been apprehended or taken into custody, with one arrest made in China in May and another fugitive captured in Mexico just last week.

Among those charged in the indictment is Sai "Tommy" Zhang, who was initially indicted in May 2023 on money laundering charges related to drug trafficking.

This case highlights the concerning nexus between Mexican cartels and Chinese nationals operating within the United States, demonstrating their ability to orchestrate sophisticated illegal financial operations. The successful dismantling of this money laundering scheme by law enforcement authorities serves as a strong reminder of their ongoing efforts to combat organized crime and protect national security.