Federal officials have charged a Chicago woman with laundering large volumes of suspected narcotics proceeds after a months-long investigation linked her to cash exchanges tied to Mexican drug cartels and Chinese cryptocurrency networks, according to a recently unsealed federal complaint.
Homeland Security Investigations arrested Xiao Mei of Canaryville on allegations that she coordinated a series of large cash exchanges in Chinatown and River North between February and July 2024. Prosecutors said Mei, described as a Chicago-based broker for a Chinese money-laundering network, regularly used WeChat to arrange pickups of bulk U.S. currency from associates of drug traffickers and transferred equivalent sums to China through cryptocurrency and “mirror transactions.”
Investigators said Mei’s alleged activity fits into a broader system used by Mexico-based money laundering and drug trafficking organizations, or MLDTOs, to conceal drug proceeds.
In general, these groups purchase South American cocaine that is shipped through Mexico and smuggled into the United States, the feds said. They also grow, cultivate, cook, and process heroin, methamphetamine, and marijuana in Mexico, then move the drugs north for resale. The sale of these controlled substances generates massive cash profits that the cartels must move out of the United States and back into their own networks.
According to the federal complaint, a law enforcement source told investigators that Mei contacted them almost daily to handle large cash transactions, often expressing reluctance to meet “foreigners” alone. According to federal agents, Mei used the term “foreigner” to refer to anyone who was not Chinese.
In one exchange, the complaint says, Mei accepted a black bag containing about $40,000 from two people in a white vehicle, then delivered the cash later that night to an associate near East Erie Street and North Wabash Avenue in River North. That associate allegedly transferred the equivalent amount to a Chinese bank account at Mei’s direction.
Subsequent monitored transactions detailed in the affidavit include a March 5 transfer of $50,000, an April 5 pickup of $100,000, and additional deliveries of $36,000 and $51,500 in May. In each case, agents say, Mei used WeChat to coordinate meetings in and around Chinatown, provide cryptocurrency wallet codes, and direct conversions into Chinese currency or digital assets such as Tether. Investigators said multiple cash deliveries tested positive for narcotic residue during K-9 inspections.
The investigation culminated on July 15, 2024, when law enforcement stopped Mei’s white Porsche after she allegedly planned another $80,000 transfer. Officers found cash inside a white fanny pack, along with two cell phones, and a K-9 unit again alerted to drug odors, the complaint said. Mei declined to make any statements to investigators following her detention.
According to the affidavit, an individual identified as “B,” who was seen handing Mei cash in February 2024, later admitted to acting as a courier for a Mexican “boss” and said they were paid $750 per delivery to move drug proceeds between Latin and Chinese intermediaries. The cooperating witness in the case was compensated for assisting law enforcement and had no criminal history, the document noted.
Prosecutors charged Mei with money laundering and operating an unlicensed money-transmitting business.
https://cwbchicago.com/2025/11/chicago-woman-charged-with-laundering-large-volumes-of-cash-for-mexican-drug-cartels.html