U.S. Sanctions Sinaloa Cartel Crypto Laundering Network

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) sanctioned more than a dozen individuals and entities tied to two Sinaloa Cartel-linked networks, including one operation accused of converting fentanyl and other drug proceeds into cryptocurrency on behalf of the cartel. Among those designated are Armando de Jesus Ojeda Aviles, identified by OFAC as the head of a laundering network handling proceeds from fentanyl and other narcotics sales on behalf of the cartel, and Jesus Gonzalez Penuelas, described as a fugitive leading a separate drug trafficking and laundering organization. The laundering network used cryptocurrency transfers, U.S. cash pickups, and Mexico-based brokers tied to Los Chapitos, a Sinaloa Cartel faction led by Ivan and Alfredo Guzman Salazar, sons of Joaquin "El Chapo" Guzman Loera, who remain at large.

Designated Individuals and Roles

OFAC identified Armando de Jesus Ojeda Aviles as the head of the laundering network coordinating cash pickups in the United States and facilitating cryptocurrency conversions. Jesus Alonso Aispuro Felix brokered digital currency transfers as an associate of the network, while Rodrigo Alarcon Palomares facilitated money pickups. Jesus Gonzalez Penuelas was designated as a fugitive leading a separate drug trafficking and laundering organization.

Laundering Methods and Network Structure

The group collected bulk cash in the United States, converted it into cryptocurrency, and routed funds back to cartel leadership in Mexico. The network operated through cryptocurrency transfers, U.S. cash pickups, and Mexico-based brokers connected to Los Chapitos, the faction led by Ivan and Alfredo Guzman Salazar.

Enforcement Actions and Consequences

As a result of OFAC's action, all property and interests in property of the designated or blocked persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Any entity owned 50% or more by a blocked person is also frozen. U.S. persons are prohibited from engaging in any transactions with the designated individuals and entities.