How a Secret Chinese Money Pipeline Through Wynn Las Vegas was Finally Exposed

In September 2024, Wynn Las Vegas agreed to forfeit $130 million to the US Department of Justice after admitting it “conspired with unlicensed money transmitting businesses that moved millions of dollars in illicit funds through the casino.” However, few details about the conduct behind the largest forfeiture by a US casino were made public at the time.

The forfeiture announcement described the violations in broad terms, leaving details about how underground money transfers worked, why casino employees were implicated, or how Mexican cartel proceeds ended up in the hands of high-rolling gamblers on the Las Vegas Strip.

A CNN investigation has now shed light on the story. After reviewing hundreds of pages of court documents and interviewing investigators directly involved, CNN uncovered the involvement of Chinese underground bankers, fentanyl-linked cartel cash, and Wynn VIP hosts in a complex scheme to move millions of dollars to the casino.

Inside the Illegal Money Network

According to CNN, middlemen like Lei Zhang served as intermediaries catering to Chinese high-roller gamblers who faced strict currency controls at home. China imposes a $50,000 per year limit on moving money out of the country, but these gamblers needed more.

The intermediaries filled the gap by supplying the Chinese nationals with US currency, usually sourced from criminal activities, including drug trafficking and prostitution. The gamblers would then pay back via Chinese bank accounts. That way, they avoid US financial scrutiny.

Wynn employees were also part of the scheme. VIP hosts would arrange meetings between the intermediaries and high-rollers in hotel rooms, bathrooms, and other private areas of the casino. They would exchange cash, allowing the gamblers and money movers to skirt US and foreign money transfer laws, including federal Anti-Money Laundering (AML) rules.

Authorities told CNN they had evidence that some of the cash brought into the casino came from “prostitution, human smuggling and the street sale of deadly drugs.” Chris Urben, a former DEA official, drove home the point vividly: “Forty-eight hours ago, that was the proceeds of fentanyl.”

How Investigators Broke Open the Case

The case began in 2018. Then, another Las Vegas casino noticed suspicious patterns: men arriving with satchels, meeting casino hosts, and walking out without gambling.

That tip ultimately led to the 2019 arrest of Zhang and three other Chinese nationals, who were operating as couriers or underground bankers: Bing Han, Liang Zhou, and Fan Wang.

CNN’s reporting states that investigators subpoenaed phone records and discovered the men were in constant contact with Wynn hosts. They spoke “multiple times a day every day.” Surveillance later confirmed regular cash deliveries tied directly to illicit activities.

Undercover stings followed. In the first, conducted in May 2019, investigators lured Zhang to a hotel room, believing it was for a $150,000 cash drop. They seized “four brick-sized stacks of cash” from his bag. A woman accompanying him carried several phones. Investigators discovered that she ran an escort service. Two-thirds of the cash in the bag belonged to her.

By late 2020, all four defendants pleaded guilty to operating an unlicensed money-transmitting business. Zhang had to forfeit $150,000 and received a 15-month sentence in federal prison. The rest also forfeited hundreds of thousands in cash.

One prosecutor estimated in court that the broader pipeline was “in the hundred-million dollar range” annually.

The State Penalty — and Its Connection to the Same Conduct

Months after the 2024 federal forfeiture, Nevada also punished Wynn. In May 2025, the Nevada Gaming Commission fined Wynn $5.5 million. The regulator found significant compliance failures related to employee involvement in illicit cash schemes.

CNN reports that this state fine was related to the federal case. Nevada regulators concluded that Wynn experienced “significant compliance breakdowns,” though they also acknowledged the company’s cooperation and remediation efforts.

Broader Scrutiny of Wynn Resorts

The CNN findings arrive against the backdrop of a longer trail of regulatory and governance scrutiny involving Wynn Resorts. After multiple sexual misconduct allegations against founder Steve Wynn became public, he resigned in 2018.

In July 2023, the Nevada Gaming Commission finalized a settlement. It required him to pay a $10 million fine and formally cut ties with the company as part of the agreement. Wynn Resorts also paid millions to resolve multiple shareholder lawsuits following the allegations.

These past controversies provide context for the latest AML-related actions, which add to a multiyear pattern of compliance pressure on the operator.

Wynn’s Response

Wynn Resorts told CNN that it fully cooperated with investigators. The company also terminated the small number of employees involved, stating that their actions violated company policy. The company stated:

“Wynn is committed to upholding the highest standards of integrity, compliance, and regulatory responsibility. We accept responsibility for the historical deficiencies identified, have taken meaningful remediation, and are dedicated to ensuring that such failures do not reoccur.”

As part of its settlement obligations, Wynn added senior compliance personnel, established an independent oversight committee, and implemented enhanced anti-money laundering controls.