- The US Treasury sanctioned two alleged money laundering networks accused of helping the Sinaloa Cartel move fentanyl proceeds through cryptocurrency.
- Authorities said the operation was coordinated by Homeland Security and the DEA, with support from Mexican financial intelligence officials.
- Treasury identified several individuals and Ethereum wallet addresses allegedly used to convert cartel cash into crypto transfers.
The US Treasury has imposed sanctions on members of two alleged money laundering networks accused of helping the Sinaloa Cartel move fentanyl trafficking proceeds through cryptocurrency channels. The action was announced on 20 May by the Office of Foreign Assets Control (OFAC).
Officials said the sanctions were the result of a coordinated investigation led by the Homeland Security Task Force with support from the Drug Enforcement Administration and cooperation from Mexico’s financial intelligence authorities.
Treasury Secretary Scott Bessent said the administration would continue efforts against cartel-linked fentanyl operations.
This Administration will not allow narco-terrorists to flood our borders with poison… Treasury will continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and Keep America Safe.
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Among those targeted was Armando de Jesus Ojeda Aviles, who allegedly oversaw a network responsible for laundering proceeds from fentanyl and other narcotics sales on behalf of the cartel. Authorities said the network collected large amounts of cash in the United States before converting the funds into cryptocurrency for transfer into Mexico.
Jesus Alonso Aispuro Felix was also sanctioned. The Treasury described him as a close associate of Ojeda Aviles who allegedly brokered bulk transfers of drug proceeds through blockchain-based transactions.
The sanctions additionally covered six Ethereum wallet addresses connected to the operation. Five of those addresses were reportedly associated with Ojeda Aviles. Treasury data cited in reports showed one address transferred US$894 (AU$1,252) in Tether’s USDT stablecoin on 27 April after remaining dormant for more than a year.
The sanctions were issued under executive orders related to terrorism and illicit drug trafficking activities.
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