U.S. Justice Department secures 12-year sentence in cocaine, money laundering and terrorism support case

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12-year sentence in cocaine-terror case

Highlights

Wenshen Xu receives 12 years imprisonment, five years supervised release, and a $22 million money judgment for cocaine importation, money laundering, and terrorism support involving CJNG.
Between November 2023 and his July 17, 2025 arrest, Xu's network imported over 450 kilograms of cocaine and laundered more than $22 million using cryptocurrency, trade-based methods, and encrypted communications.
The case underscores U.S. law enforcement's focus on disrupting transnational criminal organizations through international cooperation and targeting both trafficking and money laundering intermediaries.

Sentence details and trafficking scheme

As reported by the U.S. Department of Justice, Wenshen Xu, 52, is sentenced after prosecutors say he conspired to import cocaine into the United States, launder drug proceeds and provide material support to Cartel de Jalisco Nueva Generacion, or CJNG, which the U.S. designates as a Foreign Terrorist Organization.

Federal authorities say Xu, who is based in Honduras and was extradited from Guatemala, receives 12 years in prison, five years of supervised release and a $22 million money judgment. Officials say the case reflects a broader push to dismantle transnational criminal organizations and the financial networks that support them.

According to court documents, Xu used transportation contacts across Latin America to move multi-kilogram cocaine loads into the United States. Prosecutors say the network had access to airstrips, airports, armored cars, couriers and associates, and that Xu and others agreed to facilitate a cocaine shipment out of Cali, Colombia, for an individual claiming to represent CJNG.

Authorities say that from in or around November 2023 until his arrest, Xu and his co-conspirators imported more than 450 kilograms of cocaine into the United States and coordinated the laundering of more than $22 million from cocaine and fentanyl sales. Investigators say the operation used cryptocurrency transfers, trade-based money laundering methods and encrypted communications platforms to conceal the proceeds.

Regional security and enforcement impact

U.S. law enforcement officials say the sentencing underscores the security risks posed by narco-terrorism and the role of international cooperation in pursuing suspects operating across multiple countries. Xu is arrested in Guatemala on July 17, 2025, at the request of the United States, and is extradited to the United States on Jan. 30.

Justice Department and Drug Enforcement Administration officials say the case highlights how trafficking groups move drugs into the U.S. market while shifting illicit proceeds out through complex financial channels. The prosecution also signals continued pressure on organizations linked to cocaine and fentanyl distribution, as well as on intermediaries who provide transport and laundering services.

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