The U.S. Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on a cryptocurrency laundering network accused of moving fentanyl proceeds for the Sinaloa Cartel between the United States and Mexico. Authorities confirmed the operation relied on crypto transfers, cash pickups, and brokers linked to Los Chapitos, a faction tied to the sons of Joaquin "El Chapo" Guzman.
Key Sanctioned Individuals
OFAC designated Armando de Jesus Ojeda Aviles as a leading figure in the laundering structure, accusing him of coordinating cash collections across the U.S. before converting the money into crypto for cartel-linked transfers. Jesus Gonzalez Penuelas was also sanctioned for leading another trafficking and laundering organization tied to narcotics operations. According to OFAC, both networks helped move profits from fentanyl and other drug sales.
How the Network Operated
Federal investigators said the organization collected bulk cash from operatives inside the U.S., then converted those funds into cryptocurrency before routing assets back to cartel leadership in Mexico. Officials claimed the structure relied heavily on Mexico-based brokers connected to Los Chapitos. Jesus Alonso Aispuro Felix allegedly facilitated crypto transfers for the operation, while Rodrigo Alarcon Palomares handled money pickups for the broader network.
Sanctions Impact and Asset Freeze
Treasury officials stated that all property and financial interests tied to sanctioned individuals are now blocked in the U.S. U.S. citizens and companies cannot conduct transactions involving those individuals or their entities. Any business owned at least 50% by a sanctioned person automatically falls under the restrictions. The action aims to disrupt financial channels used to move narcotics proceeds through crypto systems and cash networks.
Broader Crackdown on Crypto Crime
U.S. agencies continue increasing pressure on criminal organizations using digital assets for international money movement. Officials argue cartels increasingly blend crypto transactions with traditional laundering methods to evade detection. The latest sanctions underscore Washington's growing focus on cryptocurrency networks tied to fentanyl trafficking and cartel financing, as Treasury seeks to block digital payment routes supporting cross-border drug operations.