In September 2024, Wynn Las Vegas consented to relinquish $130 million to the US Department of Justice, acknowledging its role in a scheme involving “unlicensed money transmitting businesses that funneled millions of dollars of illicit funds through the casino.” At the time, specific details surrounding this record-setting forfeiture by a US casino were not disclosed.
The public statement on the forfeiture broadly outlined the violations, leaving out specifics regarding the operations of the underground money transfers, the involvement of casino employees, or the flow of funds from Mexican cartels to high-stakes gamblers on the Las Vegas Strip.
A detailed investigation by CNN has now illuminated these operations. Through examining hundreds of pages of court documents and interviews with key investigators, CNN revealed the participation of Chinese underground bankers, the channeling of fentanyl-related cartel money, and the actions of Wynn VIP hosts in this intricate money laundering operation.
### Inside the Illegal Money Network
CNN discovered that intermediaries like Lei Zhang played a critical role, acting as bridges for Chinese high-rollers who are restricted by China’s $50,000 annual limit on international money transfers. These gamblers were supplied with US currency obtained from criminal activities such as drug trafficking and prostitution, which they would then reimburse through Chinese bank transfers, thus circumventing US surveillance.
Wynn staffers, including VIP hosts, were implicated as facilitators, arranging covert exchanges of cash within the casino’s secluded areas to evade US and international money transfer regulations and anti-money laundering laws.
Authorities indicated to CNN that some of the money entering the casino was tied to “prostitution, human smuggling, and the street sale of deadly drugs,” with former DEA official Chris Urben commenting, “Forty-eight hours ago, that was the proceeds of fentanyl.”
### How Investigators Cracked the Case
The inquiry began in 2018 when another Las Vegas casino reported suspicious activity involving men with satchels who met with casino hosts and left without gambling. This led to the 2019 arrest of Zhang and three other Chinese nationals—Bing Han, Liang Zhou, and Fan Wang—who operated as couriers or underground bankers.
Surveillance and subpoenaed phone records showed these men in constant communication with Wynn hosts, arranging regular cash deliveries linked explicitly to illicit acts. Undercover operations, including one in May 2019 where Zhang was caught during a supposed $150,000 cash exchange, played a pivotal role in unfolding the scheme.
By late 2020, all four suspects had pleaded guilty to running an unlicensed money-transfer business, with substantial cash forfeitures and prison sentences imposed.
### State Penalty and Connection to Federal Case
Following the federal forfeiture, the Nevada Gaming Commission in May 2025 imposed a $5.5 million fine on Wynn for significant compliance failures tied to this case, noting both the company’s cooperative stance and efforts to correct oversight shortcomings.
### Broader Scrutiny of Wynn Resorts
These findings are set against earlier issues at Wynn Resorts, including sexual misconduct allegations against founder Steve Wynn, which led to his 2018 resignation and subsequent financial penalties and legal settlements tied to governance lapses at the company.
### Wynn’s Response
Wynn Resorts assured full cooperation with the investigation, stating that it had terminated the few employees involved and admitted the historical lapses in policy adherence. The company has since enhanced its compliance measures and oversight to prevent future breaches of regulatory standards.
The full report is available on [CasinoBeats](https://casinobeats.com/2025/11/19/wynn-las-vegas-chinese-money-pipeline-cnn-investigation/).