The U.S. Department of the Treasury sanctioned more than a dozen individuals and entities linked to the Sinaloa Cartel on May 20, adding six Ethereum wallet addresses to the Office of Foreign Assets Control (OFAC) sanctions list. The action targets networks accused of converting cash from fentanyl sales into cryptocurrency for transfer to cartel leadership in Mexico. The sanctions resulted from a coordinated enforcement effort led by the Homeland Security Task Force with assistance from the Drug Enforcement Administration. The Sinaloa Cartel has been designated by the U.S. government as a Foreign Terrorist Organization responsible for trafficking a significant portion of the illicit fentanyl that enters the United States.
Treasury Secretary Scott Bessent stated that the administration "will not allow narco-terrorists to flood our borders with poison" and pledged to "continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and keep America safe."
Cash-to-Crypto Conversion Network
At the center of the action is Armando de Jesus Ojeda Aviles, whom the Treasury identified as the head of a network that collected bulk quantities of cash from U.S. drug sales and facilitated their conversion into cryptocurrency. According to the Treasury press release, Ojeda Aviles is affiliated with the Los Chapitos faction of the Sinaloa Cartel and assumed the role of primary money launderer after the murder of his predecessor, Mario Alberto Jimenez Castro, who was designated by OFAC in September 2023.
The Treasury also designated Jesus Alonso Aispuro Felix, whom officials accuse of moving drug proceeds through blockchain transactions.
Sanctions Mechanics and Asset Freezing
The six Ethereum addresses added to the sanctions list effectively freeze any assets held in those wallets and prohibit U.S. persons from engaging in transactions with them. One USDT-linked address reportedly became active again in April after more than a year of dormancy.
Government Enforcement and Compliance
A Department of Justice report from July 2025 indicated that the DEA had previously seized more than $10 million in cryptocurrency assets linked to the Sinaloa Cartel. Blockchain analytics firm Chainalysis confirmed it has labeled the relevant cryptocurrency addresses in its product suite and will continue to monitor on-chain activity associated with the new designations.
Exchanges and wallet providers are required to screen against the updated OFAC list to ensure compliance and avoid facilitating transactions with designated addresses. The enforcement action underscores the growing role of cryptocurrency in transnational narcotics operations and the U.S. government's expanding use of financial sanctions to target digital asset infrastructure tied to organized crime.
