COVID-19 is costing drug cartels millions of dollars

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COVID-19 is costing drug cartels millions of dollars
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The coronavirus pandemic is costing drug traffickers millions, multiple law enforcement officials tell NBCNews. “When there’s less hay in the haystack, it’s easier to find the needle.'

But in New York, the cartels typically rely on “international Asian criminal organizations” to clean their cash, Donovan said. These cartel associates will buy American goods with drug money and ship them back to China. In return, the criminal gangs that receive the products will then send money back to the cartels in Mexico — often through bank wires, which are more difficult to track from China.

“More money is being stockpiled here,” he added. “So when we come across them, instead of seizing $100,000, we seize $1 million or several million dollars.” “We are definitely seeing an uptick,” said Kris Grogan, spokesman for U.S. Customs and Border Protection in Detroit.U.S. Customs and Border Protection

Unlike New York and Los Angeles, the drug money made in Michigan and Ohio is moved the old-fashioned way — by driving it across the southern border. The coronavirus is also affecting drug prices. The price of methamphetamine has skyrocketed in California, according to Bodner, rising from about $1,000 a pound in November to upward of $2,000 a pound. He said that’s due in part to the economic disruptions and difficulties in importing chemicals from China and India, as well as the closure of the southern border to nonessential travel.

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