US Sanctions Sinaloa Cartel Linked Fentanyl Trafficking Networks

In brief

Individuals and entities tied to the trafficking of fentanyl were added to the OFAC sanctions list.

Some members allegedly turned cash into crypto before sending it to the Sinaloa Cartel.

Six Ethereum addresses connected to the individuals were also added to the sanctions list.

The U.S. Treasury added individuals and entities from two separate networks tied to the Sinaloa Cartel and its crypto-facilitated fentanyl trafficking operations, it announced on Wednesday.

The sanctions stem from a coordinated effort led by the Homeland Security Task Force (HSTF) with help from the Drug Enforcement Agency (DEA).

“As President Trump has made clear, this administration will not allow narco-terrorists to flood our borders with poison,” Secretary of the Treasury Scott Bessent said in a statement. “Treasury will continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and keep America safe.”

The press release highlights the sanctioning of network head Armando de Jesus Ojeda Aviles, who allegedly facilitated the conversion of cash into cryptocurrency that later was transferred to the Sinaloa Cartel. His associate, Jesus Alonso Aispuro Felix, was also added to the sanctions list and is allegedly responsible for similarly transferring proceeds from the drug trade via the blockchain.

The sanctions list additions also include six Ethereum network addresses, five of which are connected to Ojeda Aviles. Of the six addresses, five have been inactive for years, however an ETH address ending in “e27cb” was active on April 27, sending $894 worth of Tether’s dollar-backed stablecoin, USDT, after not transacting for more than a year.

The sanctions against the members and entities are pursuant to two executive orders targeting illicit drug production and terrorists and their supporters.

“The violent Sinaloa Cartel is a U.S.-designated Foreign Terrorist Organization (FTO) responsible for a significant portion of the illicit fentanyl trafficked into the United States that kills tens of thousands of Americans each year,” the Treasury wrote.