US Treasury Sanctions Sinaloa Cartel Crypto Network Over Fentanyl Trade

TLDR

• OFAC sanctioned individuals and entities tied to Sinaloa Cartel fentanyl networks.
• Six Ethereum addresses linked to cartel-related activity were added to the sanctions list.
• Treasury said some drug proceeds were converted from cash into cryptocurrency.
• Armando de Jesus Ojeda Aviles was named over alleged crypto transfers to the cartel.
• DEA reported seizing over $10M in crypto assets from the Sinaloa Cartel in 2025.

The U.S. Treasury Department has imposed new sanctions on individuals, entities and Ethereum addresses tied to alleged Sinaloa Cartel fentanyl trafficking and crypto-based financial activity.

The Office of Foreign Assets Control announced the measures on Wednesday, targeting two networks accused of helping move drug proceeds and support the cartel’s fentanyl supply chain. The action was coordinated with the Homeland Security Task Force and the Drug Enforcement Administration.

The Treasury said some members of the networks converted cash from drug sales into cryptocurrency before transferring funds connected to the Sinaloa Cartel. The sanctions also included six Ethereum addresses linked to the targeted individuals.

OFAC Targets Crypto Wallets

One of the main targets was Armando de Jesus Ojeda Aviles, who Treasury said helped convert cash into cryptocurrency for later transfer to the cartel. His associate, Jesus Alonso Aispuro Felix, was also added to the sanctions list over alleged blockchain-based transfers linked to drug proceeds.

The sanctions freeze any U.S.-based assets belonging to the listed individuals and entities. U.S. persons are generally barred from doing business with those named on OFAC’s Specially Designated Nationals list.

The six Ethereum addresses were also added to the sanctions list. According to the details cited in the announcement, five of the addresses had been inactive for years. One address ending in “e27cb” was active on April 27, when it sent $894 worth of Tether’s USDT stablecoin after more than a year without transactions.

The move places fresh compliance duties on crypto exchanges, custodians and other regulated platforms. Firms operating under U.S. jurisdiction are required to screen transactions and block activity tied to sanctioned addresses.

Fentanyl Trade Linked to Digital Assets

Treasury said the Sinaloa Cartel remains tied to fentanyl trafficking into the United States. U.S. officials have accused cartel-linked networks of using digital assets to move proceeds and buy precursor chemicals used in fentanyl production.

Previous Treasury actions have shown how crypto can be used in fentanyl-related supply chains. In September 2023, OFAC sanctioned Mario Alberto Jiménez Castro, a money launderer linked to the cartel, and listed an Ethereum wallet that had received about $740,000 over an 11-month period.

Officials said Jiménez Castro used both virtual currency and wire transfers to launder fentanyl proceeds before routing funds back to cartel leadership in Mexico.

The Treasury has now targeted more than 290 individuals and entities connected to Sinaloa Cartel synthetic opioid operations. These actions fall under executive orders focused on illicit drug production, trafficking networks and groups designated under U.S. terrorism-related authorities.

Crypto Compliance Faces More Scrutiny

The latest sanctions show how blockchain data is being used in federal enforcement actions. Public ledgers can allow investigators to trace wallet activity, connect addresses to individuals and identify transactions across crypto networks.

The crypto industry faces growing pressure to monitor sanctioned addresses. Centralized exchanges, payment providers and custodial services are expected to block listed wallets. DeFi platforms and front-end operators may also face pressure to improve screening tools.

Blockchain analytics firms have reported that sanctions and enforcement actions can slow parts of illicit crypto activity, although criminal networks may try to use mixers, bridges or other tools to conceal transfers.

The Treasury’s focus on Ethereum addresses linked to cartel activity adds another case to the wider debate over digital assets and illicit finance. Law enforcement officials say crypto can support cross-border money movement, while blockchain tracing can also help identify financial routes used by criminal groups.

The Department of Justice previously reported that the DEA seized more than $10 million in crypto assets from the Sinaloa Cartel in 2025. The latest OFAC action expands the federal effort to track and restrict crypto-linked fentanyl financing

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