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The U.S. Treasury has sanctioned six Ethereum addresses as part of a May 20 action targeting financial networks tied to the Sinaloa cartel’s fentanyl trafficking operations.
The action targeted 11 individuals and two entities. Treasury said the designations disrupted two separate networks accused of laundering drug proceeds and supporting cartel-linked activity.
Treasury Targets Two Sinaloa Finance Networks
Treasury said one network was led by Armando de Jesus Ojeda Aviles, who is accused of laundering proceeds from fentanyl and other narcotics trafficking on behalf of the Sinaloa cartel.
The second network was tied to fugitive Jesus Gonzalez Penuelas. Treasury described him as leading a long-running organization involved in drug trafficking into the United States and money laundering for the cartel.
The action shows U.S. authorities continuing to target the financial infrastructure behind fentanyl trafficking, including both traditional front businesses and crypto-linked wallets.
Six Ethereum Addresses Added to SDN List
TRM Labs said the May 20 action added six Ethereum addresses to the Specially Designated Nationals list. Five of the wallets were attributed to Ojeda Aviles, while one was attributed to Liliana Orozco Romero.
TRM said the pattern was consistent with multi-wallet fragmentation used to layer and obscure illicit flows. That matters for compliance teams because the sanctions do not only apply to named individuals. Any virtual asset service provider processing transactions involving the designated Ethereum addresses can face sanctions exposure.
Gorditas Chiwas and Mamba Negra Also Sanctioned
OFAC also sanctioned two entities alongside the 11 individuals. The entities were Gorditas Chiwas and Grupo Especial Mamba Negra, S. de R.L. de C.V. TRM said cartel networks often use commercial entities to facilitate and obscure financial flows.
The action therefore, extended beyond crypto wallets. It targeted people, businesses and blockchain addresses that U.S. authorities say formed part of the cartel’s financial network.
Exchanges Face New Sanctions Screening Pressure
The designations shift immediate pressure to exchanges, wallet providers and other crypto service firms. TRM said direct address screening may not be enough because exposure can sit one or two hops away when illicit actors spread funds across multiple wallets.
The action shows crypto is being treated as one layer of cartel laundering infrastructure, not a side issue. For compliance teams, the message is clear. Ethereum addresses tied to sanctioned cartel networks must be screened quickly, and firms may need to monitor nearby wallet activity as U.S. fentanyl enforcement moves further on-chain.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.