The US Department of the Treasury recently imposed a new set of sanctions against the Sinaloa Cartel, citing increasing evidence that the organization is utilizing cryptocurrency to facilitate fentanyl trafficking and to launder the profits from its illegal activities.

Utilization of Cryptocurrency for Drug Trafficking

The Sinaloa Cartel is recognized as one of the oldest and most influential drug trafficking organizations in Mexico. It has been classified by the United States as a key foreign narcotics trafficker since April 15, 2009.

According to the Treasury, the cartel is heavily involved in the sale of illicit fentanyl, which generates significant financial proceeds that need to be transferred, cleansed, and ultimately reintegrated into the cartel’s financial framework.

A notable figure in this recent sanctions announcement is Armando de Jesus Ojeda Aviles. The US authorities describe him as the leader of a cryptocurrency laundering operation associated with the cartel’s drug trafficking network.

According to the Treasury, Ojeda Aviles orchestrates the collection of substantial amounts of cash in the United States, which is linked to the sales of fentanyl and other illegal drugs.

He is then alleged to facilitate the conversion of this bulk cash into various cryptocurrencies, raising concerns that these funds are subsequently transferred for the cartel’s activities in Mexico.

Details of Recent Sanctions

The Treasury also identified Jesus Alonso Aispuro Felix, who is described as a key associate of Ojeda Aviles and the primary money broker within the network. Aispuro Felix is reportedly responsible for managing large transfers of illicit funds via cryptocurrency.

Another individual highlighted is Rodrigo Alarcon Palomares, who the Treasury claims organized money pickups in the US for the cartel’s laundering operations.

A significant legal development involves Alarcon Palomares, who faced federal charges from a grand jury in the US District Court for the District of Colorado in April 2024 for three counts related to laundering drug profits through cryptocurrency.

As part of their sanctions, the Treasury added six Ethereum network addresses to their list of targeted entities, with five of these addresses directly associated with Ojeda Aviles.

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