The US Treasury Department unveiled fresh sanctions against a cryptocurrency laundering network connected to the Sinaloa Cartel, aiming to disrupt the flow of illicit funds derived from fentanyl trafficking. Central to the crackdown is Armando de Jesus Ojeda Aviles, identified as the leader of a scheme converting drug proceeds from bulk cash into cryptocurrency to move money across borders.
Ojeda Aviles allegedly collects large amounts of cash within the United States, proceeds Treasury links directly to fentanyl and other drug sales, before facilitating its conversion into digital assets. These crypto funds are then funneled back to cartel members in Mexico, effectively laundering money through blockchain networks.
The Treasury also sanctioned Jesus Alonso Aispuro Felix, a key money broker within this network, credited with orchestrating significant transfers of drug money via cryptocurrency. Another associate, Rodrigo Alarcon Palomares, faces an indictment by a federal grand jury on charges of laundering drug proceeds using crypto, highlighting the legal efforts accompanying the sanctions.
As part of the measures, the Treasury designated six Ethereum addresses linked to this network, with five directly connected to Ojeda Aviles. These digital wallets represent nodes in the broader laundering operation that enable the cartel to obscure the origin and destination of their illicit funds.
The Sinaloa Cartel, longstanding as one of Mexico’s most powerful drug trafficking organizations, has been identified by the US since 2009 as a major player in narcotics trafficking. This latest action reinforces concerns about the cartel’s adaptation to digital financial tools to sustain and expand its fentanyl sales.