US sanctions six Ethereum addresses tied to Sinaloa Cartel
U.S. Treasury adds six Ethereum addresses to its sanctions list over links to a Sinaloa Cartel money‑laundering network that converted drug proceeds into cryptocurrency.
On Wednesday the U.S. Treasury’s Office of Foreign Assets Control added six Ethereum addresses to the Specially Designated Nationals list, identifying them as linked to a Sinaloa Cartel money‑laundering network that converted drug proceeds into cryptocurrency.
The additions are part of sanctions against 11 individuals and two entities tied to two separate Sinaloa Cartel financial networks. One network, led by Armando de Jesus Ojeda Aviles, allegedly collected bulk cash in the United States from fentanyl and other drug sales before converting the funds into digital assets for transfer to cartel recipients in Mexico.
Placing the Ethereum addresses on the SDN list blocks any property or interests in property of those addresses that fall within U.S. jurisdiction and generally prohibits U.S. persons from engaging in transactions with them. The Treasury did not identify which crypto platforms, exchanges or protocols were used to process the conversions.
The designation describes methods used to move illicit proceeds, including cash couriers and front businesses, in addition to converting fiat into cryptocurrency for transfer to cartel‑controlled wallets.
Virtual asset service providers that interact with the flagged addresses may face sanctions exposure. Firms handling funds tied to SDN‑listed addresses may need to freeze assets, file suspicious activity reports and block further transfers to comply with U.S. sanctions rules. Non‑U.S. companies with ties to the U.S. financial system could face indirect consequences if they do not address exposure to the listed addresses.
The Sinaloa Cartel is one of Mexico’s largest drug trafficking organizations and has been linked to cross‑border narcotics distribution, including fentanyl. U.S. authorities have increased efforts to disrupt the financial networks that sustain such groups.
OFAC has been naming specific blockchain addresses to apply blocking restrictions to digital‑asset identifiers under U.S. law. The action is part of broader efforts to identify and disrupt networks that use digital assets to launder illicit funds.
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