The construction of the Ralco Hydroelectric Plant, which displaced indigenous burial sites, was a breaking point in state-Mapuche relations, contributing to the formation of the Coordinadora Arauco-Malleco (CAM) in 1997 following the burning of three trucks belonging to Forestal Arauco.

Within CAM's leadership, Llaitul was supported by Ramón Llanquileo (arrested in January 2007 and sentenced to five years for an arson attack in Ercilla) and José Huenchunao (captured on March 21, 2007).

[7][8][9] On August 24, 2022, he was arrested in Cañete by members of the Investigations Police of Chile on charges of timber theft and violations of the State Security Law, following a complaint filed by the second government of Sebastián Piñera in 2020.

[16] That same month, he was found guilty of all charges, including incitement to violence and firearms use under the State Security Law, as well as violent occupation, timber theft, and attacks on authorities.

[10][17][18] Following his sentencing, Llaitul called for the recovery of the CAM, criticizing the Gabriel Boric administration and the Communist Party of Chile for allegedly serving "oligarchic and corporate interests" in conflict zones.