The U.S. Department of the Treasury has sanctioned six Ethereum addresses allegedly used by the Sinaloa Cartel to launder proceeds from illegal fentanyl trafficking. The Office of Foreign Assets Control (OFAC) added the wallets to its sanctions list, freezing any assets held and prohibiting U.S. persons from transacting with them.
According to the Treasury, the addresses are linked to a crypto laundering network led by Armando de Jesus Ojeda Aviles, who coordinates the collection of bulk cash from fentanyl and other drug sales in the United States and converts it into cryptocurrency. The funds are then transferred to the cartel in Mexico. A key money broker, Jesus Alonso Aispuro Felix, and an associate, Rodrigo Alarcon Palomares—indicted in April 2024 for laundering drug proceeds via crypto—were also named.
The move signals heightened regulatory scrutiny on illicit crypto finance and demonstrates the government’s ability to trace and seize digital assets. It reinforces that blockchain transactions are not beyond the reach of U.S. sanctions, potentially setting a precedent for future enforcement against criminal enterprises using cryptocurrencies.
