The U.S. government has designated twelve individuals and two companies involved in money laundering operations for the Sinaloa Cartel. The groups allegedly transformed cash coming from the sales of drugs and fentanyl in the U.S. and converted it into cryptocurrency.
Key Takeaways:
- OFAC sanctioned 6 people and 2 businesses using crypto to launder Sinaloa Cartel drug money.
- Exposing crypto’s illicit use, the U.S. Treasury blocked all assets of entities with 50% cartel ownership.
- Sec. Scott Bessent will next target more cartels after freezing US assets of these 12 linked individuals.
US Sanctions Sinaloa Cartel Crypto Money Laundering Networks
On Wednesday, the U.S. government Office of Foreign Assets Control (OFAC) sanctioned six individuals and two companies due to their involvement in a money laundering scheme for the Sinaloa cartel, one of the largest drug-trafficking organizations linked to the fentanyl flows entering the country.
Armando de Jesus Ojeda Aviles is the head of this network, which also includes Jesus Alonso Aispuro Felix, Rodrigo Alarcon Palomares, Alfredo Orozco Romero, Amalia Margarita Romero Moreno, and Liliana Orozco Romero. Security company Grupo Especial Mamba Negra and Gorditas Chiwas, a Mexican restaurant based in Chihuahua, were also designated.
The designated are accused of organizing a scheme to collect bulk cash deliveries, a product of the sales of illicit drugs such as tentanyl, methamphetamine, and cocaine, including processing them and converting them into cryptocurrency to be sent to the Sinaloa Cartel in Mexico.
Ojeda Aviles is part of the “Chapitos” faction of the Sinaloa Cartel, formed by the sons of Joaquín Guzmán Loera, also known as “El Chapo.” The U.S. Treasury also states that he was in charge of overseeing shipments of narcotics coming from Mexico to the U.S.
Another six individuals were also designated for their involvement in the same activities, including moving cash in bulk from the U.S. to Mexico and using companies to obfuscate the source of these funds.
Secretary of the Treasury Scott Bessent stressed that the Trump administration will not allow terrorists to flood the U.S borders with poison.
“Treasury will continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and Keep America Safe,” he stated.
After these designations, the OFAC explained that “all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported.” In addition, companies owned 50% or more by these individuals are also blocked.
Other criminal groups, like the Tren de Aragua, have also been sanctioned by the OFAC for using crypto to launder illicit funds.