El Chapo Guzman, a former leader of the Sinaloa cartel, is currently awaiting extradition to the United States.
The Mexican drug lord was recaptured in January after breaking out of a high-security prison.
Juan Manuel Alvarez Inzunza, nicknamed Rey Midas (King Midas) is suspected of laundering $300 million-$400 million a year for the Sinaloa cartel through a network of companies and currency exchange centers.
A US federal court in Washington had requested Juan Manuel Alvarez Inzunza’s arrest and he is likely to be extradited.
El Chapo Guzman himself is also facing extradition to the US on charges of drug trafficking in California, and murder in Texas.
Earlier this month, the drug lord asked for the extradition process to progress rapidly so he could receive better treatment in prison.
Since El Chapo Guzman’s recapture in January, six months after he escaped from prison, he has been subject to a stricter regime.
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