US Treasury Sanctions Sinaloa Cartel Associates Over Crypto Money Laundering

The United States Treasury Department’s Office of Foreign Assets Control (OFAC) has enforced sanctions against individuals and entities linked to a Mexican cartel that is trafficking illicit drugs and laundering the proceeds through cryptocurrency networks.

According to a press release from the Treasury, these individuals and entities lead networks that launder the proceeds of fentanyl and other narcotics trafficking activities for the Sinaloa Cartel. The laundering schemes funnel the profits back to Mexico through blockchain networks.

Treasury Sanctions Illicit Drug Traffickers

A multi-year investigation by U.S. authorities has found that Jesus Gonzalez Penuelas heads the illicit drugs trafficking network in the U.S., while Armando de Jesus Ojeda Aviles leads the profit laundering schemes on behalf of the Sinaloa Cartel. This cartel, responsible for multiple violent deaths in Mexico and drug-induced deaths in America, has been deemed a Foreign Terrorist Organization (FTO) by the U.S.

The sons of the imprisoned drug trafficker  Joaquin “El Chapo” Guzman Loera run the Sinaloa Cartel, with the help of the just-sanctioned individuals. While steering the wheels of the drug trafficking from Mexico, Aviles depends on associates like Penuelas and Rodrigo Alarcon Palomares to pick up cash and broker transfers through crypto addresses. The drugs that are sold include cocaine and methamphetamine.

A U.S. District Court in Colorado indicted Palomares in April 2024 for laundering drug proceeds. He was found guilty on three counts of laundering drug proceeds via cryptocurrency. During his arrest in October 2023, Mexican authorities found weapons and ammunition in his possession. Despite Palomares’ arrest, the Sinaloa Cartel’s trafficking activities have waxed stronger.

Protecting American Communities

Aviles’ network comprises Mexico-based drug suppliers, money brokers, and coordinators of huge wire transfers across the U.S. He is also affiliated with Los Chapitos, a hyper-violent faction of the Sinaloa Cartel, having taken over as the primary launderer of the group following the murder of his predecessor, Mario Alberto Jimenez Castro.

Besides Aviles and Penuelas, the Treasury also announced sanctions against Jesus Alonso Aispuro Felix, businessman Alfredo Orozco Romero, Amalia Margarita Romero Moreno, and Liliana Orozco Romero, among others. Most of these associates serve as money brokers, security advisors, and trusted front persons.