The dramatic military escalation of Donald Trump off the coast of Venezuela is not only disproportionate, but his entire drug policy lacks coherence both within and outside the United States. During the United Nations General Assembly, Trump tried to justify the attacks on boats in the Caribbean and the seventeen extrajudicial killings at that time (now there are more than fifty), stating that they were operations to protect Americans from dangerous drugs, especially fentanyl.
Among the criminals Trump pardoned are also several executives from the cryptocurrency exchange BitMEX, who had pleaded guilty to money laundering. These pardons come at a time not only of great tensions in Trump's relations with Latin America, but also as the cocaine and other substances market is rapidly transforming, operating in an increasingly transnational manner, with greater sophistication of criminal organizations and with profits never before seen in the history of drug trafficking.
Recently, the announced decertification of Colombia was implemented, which seems to have obeyed more of a political decision made under the pressures and suggestions of the Colombian right than an objective assessment of this country's efforts against drug trafficking. This decertification has caused indignation among many Colombians, especially President Gustavo Petro, who, at the UN General Assembly, highlighted the injustice of this unilateral decision.
The unilateral actions and those contrary to international law that the Trump government is taking in the Caribbean or within the United States do not approach any policy that could minimally be effective against drug trafficking. According to the United Nations Office on Drugs and Crime, 87% of the cocaine trafficking routes entering the United States come from the Pacific from Colombia, Ecuador, and Peru. The most contradictory aspect of Trump's policy, which has not been exhaustively analyzed by the media but raises suspicions about his own connections with major drug lords, is the pardon he granted to some of the few drug lords who were in US prisons.
The most notable case of these pardons to drug traffickers is that of Ross Ulbricht. This San Francisco citizen, a cryptocurrency expert technocrat, operated a dark network from which a platform emerged for use in any illegal transaction, especially the laundering of drug trafficking assets. His website on the internet was protected by the anonymity of the booming cryptocurrency market. In addition to the pardon for Ulbricht, Trump also pardoned Larry Hoover, from Chicago, who was serving six life sentences for various crimes committed as the leader of the Gangster Disciples.
While many have been released from prison and walk the corridors of Wall Street, through transnational cryptocurrency networks, and through drug money laundering centers without fear of being apprehended, Trump's policies on domestic drug consumption also contradict any strategy that could be considered effective for reducing consumption or treating addiction. His policies have focused on toughening penalties for consumers, which has been proven to be completely ineffective in reducing demand. At the same time, Trump is cutting or defunding detoxification programs and other public health measures that have proven effective in reducing consumption. Funds were also withdrawn for "safe consumption sites" where people suffering from addiction can get counseling and services to guide them toward detoxification and recovery.
Another little-analyzed aspect, which plays an important role in the drug trafficking equation, is the flow of arms from the United States to Latin American countries. The so-called "iron river" is the endless flow of high-caliber, military-grade weapons that paramilitary groups buy on the large black market and that terrorize the poorest communities in these countries. This weaponry is the basis for the violence and bloodshed that urban and rural communities in Mexico, Central America, Colombia, Peru, and Ecuador experience daily at the hands of all kinds of organizations and criminal gangs.
Historically, Latin American cartels have used a money laundering system called the Black Market Peso Exchange (BMPE), in which peso brokers use legitimate businesses to deposit large sums of cash in US banks. This system, although still in use in Latin America, is being replaced by more sophisticated cryptocurrency systems, which are used by transnational criminal organizations worldwide to better take advantage of any weaknesses in countries' financial regulations. While cryptocurrency should be regulated so that criminal organizations cannot take advantage of the anonymity this system offers, the Trump government is intent on promoting it, stripping it of the weak "straitjackets" that had been imposed on it. The US Department of the Treasury announced that it will no longer require "shell companies" to reveal who their owners or beneficiaries are.
In 2024, transnational criminal organizations received an additional $25 trillion in profits due to a major expansion of the market driven by increased consumption and the consequent increase in cocaine production. These profits have had a profound impact on the market, driving innovation in cocaine production and marketing. According to Jeremy McDermott of InSight Crime, a platform that analyzes organized crime, a kilogram of cocaine is bought in Colombia for $3,000, while in Central America it is acquired for $8,000 to $12,000. When it reaches the United States, it is already worth $20,000, in Europe $35,000, in China $50,000, and in Australia $100,000. Some experts claim that the diversification of the market, the improvement in the quality and purification of the drug, have also allowed the price of cocaine to remain high despite the increase in supply. The United States remains the most stable and growing market, but Europe has become the world's largest market for cocaine.
While the market dynamics and business model are rapidly transforming and adapting, favored above all by the context of illegality in which it operates, cryptocurrencies are playing an increasingly prominent role in facilitating transactions related to the business, from production to transportation and money laundering. At the same time, Trump is eliminating or defunding detox programs and other public health measures that have proven effective in reducing consumption. Funds were also withdrawn for "safe consumption sites".
The recent resignation of Admiral Alvin Holsey, Commander of the US Southern Command, offers clear indications of opposition within the armed forces to carry out operations that could be classified as crimes against humanity. Possibly, his resignation is due to his refusal to obey Trump's orders and his Secretary of Defense (now "War") Pete Hegseth to continue these attacks. Secretary of Defense Pete Hegseth did not exaggerate when, on November 13, 2024, on Fox Business, he dubbed himself "the crypto evangelist".
In an article in The Nation magazine, published on October 7, 2025, Jacob Silverman describes the many chapters of the dark history Hegseth has with cryptocurrencies. He recently retired as an Environmental and Energy Advisor to the US government. His essays have been published in The Washington Post, The Wall Street Journal, The Baltimore Sun, among others. Nelson Thompson (*) Foreign Affairs Latin America.
