For a man who started his career with a daily salary of just $2, the net worth of Joaquín “El Chapo” Guzmán is staggering. According to recent estimates, his net worth stood at a mammoth $4 billion. At the zenith of his power, particularly between 2005 and 2011, the value of El Chapo’s assets surpassed an incredible $26 billion. To put this in context, such a staggering amount would rank him among the top-20 wealthiest individuals globally. This immense wealth primarily stemmed from his vast drug trade, with prosecutors in 2019 estimating that he dealt with drugs worth $12.7 billion since the 1990s.
Where Did El Chapo Hide His Money?
Cash is a difficult asset to manage, especially in the quantities that El Chapo dealt with. With daily earnings surpassing $100 million, he had to find ways to secure his wealth. As laundering such amounts can be a herculean task, Guzmán resorted to purchasing safe houses across Mexico. When Mexican authorities finally nabbed him in one of these homes, they stumbled upon a jaw-dropping $180 million in cash. To date, his successors, primarily his sons, allegedly manage over 50 of these houses, believed to contain over $400 million in collective cash reserves.
How Did El Chapo Launder His Billions?
El Chapo’s ingenious strategies for money laundering are notable. While many are familiar with the depositing of amounts smaller than $10,000 to evade the Bank Secrecy Act (BSA) reporting regulations, his most crafty scheme was “trade-based money laundering”. This method involved purchasing readily sellable items from a legitimate U.S. company and subsequently selling these products across the border for pesos. This strategy not only legitimized the money but also earned him profit in the process.
Another revelation highlights the involvement of a Chinese businessman, Gan Xianbing, who stands accused of laundering over $10 million of El Chapo’s drug money. Collaborating with Chinese money brokers based in Mexico since 2009, vast sums were efficiently moved, further solidifying the cartel’s financial power.
What Was the Fate of Sinaloa Post El Chapo’s Arrest?
Even with its kingpin behind bars, the Sinaloa Cartel has shown no signs of slowing down. This cartel has always operated by recognizing and exploiting vulnerabilities in the societal structures that underpin global civilization. With El Chapo incarcerated, the legacy he left behind continues to influence the international drug trade, making the Sinaloa Cartel one of the globe’s largest drug distributors.
The Lasting Legacy of El Chapo’s Wealth
Facilitated by allies like Jose Antonio and assisted by Ismael Gracia, El Chapo’s vast empire remains impactful even today. While he might be under arrest, the financial and logistical structures he established continue to thrive. His various money laundering methods demonstrate a shrewd understanding of finance, law, and global trade, underscoring how powerful and intricate the operations of drug lords can be. Despite the efforts of law enforcement agencies, the magnitude of El Chapo’s operations ensures that his net worth and influence remain significant and relevant today.
