Treasury Targets Cartel’s Crypto Money Laundering Operation
The U.S. Treasury Department has imposed sanctions on individuals and entities connected to a Sinaloa Cartel money laundering network. Officials said the group helped move profits from fentanyl trafficking through cryptocurrency transactions and cash transfers.
OFAC Accuses Network of Converting Drug Cash Into Cryptocurrency
According to the Office of Foreign Assets Control (OFAC), the network collected large amounts of cash in the United States. The money was later converted into cryptocurrency and transferred to cartel-linked operators in Mexico. Authorities connected the operation to Los Chapitos, a faction of the Sinaloa Cartel led by the sons of Joaquin “El Chapo” Guzman.
Key Individuals Named in the Sanctions
OFAC identified Armando de Jesus Ojeda Aviles as a major figure in the laundering network. Authorities also named Jesus Gonzalez Penuelas, who allegedly led a separate trafficking and money laundering organization. Several associates were accused of helping with crypto transfers and cash pickups.
US Freezes Assets and Blocks Transactions
The sanctions block all U.S.-based assets linked to the designated individuals and entities. American citizens and businesses are now prohibited from conducting transactions with anyone included in the sanctions list. Officials said the action is part of a broader effort to disrupt fentanyl trafficking and cartel financing.
