Chinese nationals in Virginia conspired with cartels to launder money: Feds
Key takeaways
- Both groups have been designated as foreign terrorist organizations by the Trump administration.
- The illegal activity allegedly took place between 2016 and 2025 and involved operatives working across the United States, Mexico, Latin America and China.
- Zhen and Wu were indicted in late April but have not been taken into federal custody as of Friday.
Why this matters: political developments that affect policy direction and public trust.
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.