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{"actor":"system:backfill","investigation_id":"4c7d3d05-b4ba-477c-b6b4-30b3a094b5da","kind":"publish","page_slug":"sinaloa-cartel-ofac-ethereum-address-designations","published_at":"2026-06-15T12:40:22.572Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Sinaloa Cartel — OFAC Ethereum Address Designations","sections":[{"content":"Six Ethereum addresses were added to OFAC's Specially Designated Nationals and Blocked Persons (SDN) list on May 20, 2026, as part of an action titled 'Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations.' The action targeted two distinct networks linked to Mexico's Sinaloa Cartel, designated under Executive Orders 14059 and 13224. The action was coordinated with the Homeland Security Task Force (HSTF), the DEA, and Mexico's Unidad de Inteligencia Financiera. Five of the six Ethereum addresses are attributed to network leader Armando de Jesus Ojeda Aviles; one is attributed to his associate Liliana Orozco Romero. A separate, earlier designation in September 2023 added the first known Sinaloa Cartel-linked Ethereum address (0x9C2Bc757B66F24D60F016B6237F8CdD414a879Fa), attributed to money launderer Mario Alberto Jimenez Castro. As of May 2026, this is the eighth Sinaloa-linked cryptocurrency designation since that initial September 2023 action.","heading":"Regulatory Status and SDN Designations","severity":"critical","sources":[{"credibility":1,"name":"Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations — U.S. Department of the Treasury Press Release","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/sb0503"},{"credibility":1,"name":"OFAC Counter Narcotics and Counter Terrorism Designations — May 20, 2026","type":"regulatory","url":"https://ofac.treasury.gov/recent-actions/20260520"},{"credibility":2,"name":"Ethereum Wallet Tied to Sinaloa Cartel Sanctioned by U.S. Government — CoinDesk, September 2023","type":"news_article","url":"https://www.coindesk.com/business/2023/09/26/ethereum-wallet-tied-to-sinaloa-cartel-sanctioned-by-us-government"}]},{"content":"The May 20, 2026 OFAC action added the following six Ethereum addresses to the SDN list. Five addresses are attributed to Armando de Jesus Ojeda Aviles: 0xaC4cC4B68ea24BbFAAC8fD127B67Ed445ACcCE22, 0x4F428c11Dc82388fa5136D636e613ad923Eb700B, 0xf2235d55b2950a0b1317469d72d07ae65b2e27cb, 0x32dA24Ca413F3E7B53145D4737e172C3bdF81e3e, and 0x038989cbb1710c72b9920dc4fa529158f463e72c. One address is attributed to Liliana Orozco Romero: 0x14779CEC0B117d5194c750C55Ea1f42086631964. The multi-wallet pattern attributed to a single individual is consistent with fragmentation techniques used to layer illicit funds and reduce the traceability of individual transaction flows. The September 2023 designation identified the Ethereum address 0x9C2Bc757B66F24D60F016B6237F8CdD414a879Fa as attributed to Mario Alberto Jimenez Castro; that wallet allegedly received approximately $740,000 in deposits to Binance over a two-month period beginning January 2023.","heading":"Designated Ethereum Addresses","severity":"critical","sources":[{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel Network, Including Six Ethereum Addresses — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/ofac-sanctions-sinaloa-cartel-network-including-six-ethereum-addresses"},{"credibility":1,"name":"Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/sb0503"},{"credibility":2,"name":"Ethereum Wallet Tied to Sinaloa Cartel Sanctioned by U.S. Government — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/09/26/ethereum-wallet-tied-to-sinaloa-cartel-sanctioned-by-us-government"}]},{"content":"The May 20, 2026 action designated 11 individuals across two networks and two corporate entities. The Ojeda Aviles network includes: Armando de Jesus Ojeda Aviles (primary money launderer for the Los Chapitos faction of the Sinaloa Cartel, coordinating bulk cash-to-cryptocurrency conversion from Sinaloa, Mexico); Jesus Alonso Aispuro Felix (chief money broker for drug proceeds transfers via digital currency); Rodrigo Alarcon Palomares (money pickup facilitator, indicted in the District of Colorado in April 2024 on three counts of cryptocurrency laundering of drug proceeds); Alfredo Orozco Romero (security advisor and debt collector); Amalia Margarita Romero Moreno (front person for family businesses); and Liliana Orozco Romero (front person for family businesses). The Gonzalez Penuelas network includes: Jesus Gonzalez Penuelas (drug kingpin active since 2007 with a $5 million DEA reward offered as of January 2024, and a fugitive from justice); Castulo Bojorquez Chaparro (production and distribution associate); Fredi Ismael Garcia Sandoval (money laundering through Mexican businesses); Luis Arnulfo Moreno Zamora (drug proceeds laundering overseer); Baltazar Saenz Aguilar (bulk cash movement coordinator); and Noe de Jesus Castro Rocha (cocaine and heroin trafficking associate). The two designated entities are Gorditas Chiwas (a restaurant in Chihuahua, Mexico) and Grupo Especial Mamba Negra, S. de R.L. de C.V. (a Mexican security company), both allegedly used as commercial front operations to facilitate and obscure financial flows.","heading":"Designated Individuals and Entities","severity":"critical","sources":[{"credibility":1,"name":"Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/sb0503"},{"credibility":1,"name":"District of Colorado — Treasury Department Designates Sinaloa-Connected Mexican National Indicted In Colorado — DOJ","type":"court_filing","url":"https://www.justice.gov/usao-co/pr/treasury-department-designates-sinaloa-connected-mexican-national-indicted-colorado"},{"credibility":2,"name":"US Sanctions Sinaloa Cartel-Linked Ethereum Addresses — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/us-sanctions-sinaloa-cartel-ethereum-addresses"}]},{"content":"According to OFAC and blockchain analytics firm Scorechain, the Ojeda Aviles network operated a professional pass-through laundering pipeline. U.S.-based couriers collected bulk cash proceeds from fentanyl and other narcotics sales across multiple U.S. states. Brokers then converted the cash into stablecoins — reportedly approximately 98.8% USDT or USDC — which were pooled and layered across multiple cryptocurrency wallets, with dwell times reportedly under ten minutes per wallet, a pattern consistent with layering to obstruct chain-of-custody tracing. The layered funds were subsequently off-ramped through centralized cryptocurrency exchanges and transferred to Mexico-based brokers who settled balances in local currency. The Scorechain analysis noted involvement of Chinese money laundering organizations that settled accounts via cryptocurrency at fees of approximately 0.5 to 5 percent. Transaction volumes cited in related enforcement contexts include a prior 2024 case involving approximately $15 million moved through cryptocurrency, a separate Los Angeles-linked case involving more than $50 million in drug proceeds, and Chinese precursor manufacturer payments that grew from approximately $30.9 million in 2023 to $39.1 million by 2025.","heading":"Money Laundering Typology","severity":"critical","sources":[{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel: What Compliance Teams Need to Know — Scorechain","type":"research","url":"https://www.scorechain.com/blog/ofac-sinaloa-cartel-crypto-sanctions-may-2026"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel Network, Including Six Ethereum Addresses — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/ofac-sanctions-sinaloa-cartel-network-including-six-ethereum-addresses"},{"credibility":2,"name":"OFAC Sanctions Fentanyl Trafficking and Crypto Laundering Network — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/sinaloa-cartel-fentanyl-trafficking-crypto-laundering-may-2026/"}]},{"content":"The May 2026 action was authorized under two executive orders: E.O. 14059 (Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade), signed in December 2021, and E.O. 13224 (Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism), as amended. The dual authorization reflects the Sinaloa Cartel's concurrent Foreign Terrorist Organization (FTO) status. On February 6, 2025, U.S. Secretary of State Marco Rubio designated the Cartel de Sinaloa as an FTO and Specially Designated Global Terrorist (SDGT), with the designation published in the Federal Register on February 20, 2025. This brought counter-terrorism authorities into all subsequent enforcement actions against the cartel. OFAC has stated that civil penalties for sanctions violations may be imposed on a strict liability basis, meaning intent and knowledge are not required for liability to attach. For non-U.S. institutions, secondary sanctions provisions under E.O. 13224 pose material risk, as engaging in transactions involving designated persons may result in loss of U.S. correspondent banking access.","heading":"Regulatory and Legal Framework","severity":"critical","sources":[{"credibility":1,"name":"Federal Register — Foreign Terrorist Organization Designations of Cartel de Sinaloa and others, February 20, 2025","type":"regulatory","url":"https://www.federalregister.gov/documents/2025/02/20/2025-02873/foreign-terrorist-organization-designations-of-tren-de-aragua-mara-salvatrucha-cartel-de-sinaloa"},{"credibility":1,"name":"Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/sb0503"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel: What Compliance Teams Need to Know — Scorechain","type":"research","url":"https://www.scorechain.com/blog/ofac-sinaloa-cartel-crypto-sanctions-may-2026"}]},{"content":"The May 20, 2026 action is the eighth Sinaloa Cartel enforcement action linked to cryptocurrency since September 2023, with designations occurring approximately every two to four months. The first such action, in September 2023, designated nine individuals connected to the cartel's Los Chapitos faction, including Mario Alberto Jimenez Castro, and added the first publicly identified Sinaloa Cartel Ethereum address (0x9C2Bc757B66F24D60F016B6237F8CdD414a879Fa) to the SDN list. That wallet allegedly received approximately $740,000 in deposits to Binance over two months beginning January 2023. Subsequent actions in 2024 targeted Mexico- and China-based money launderers and expanded the known SDN-listed crypto address set. Scorechain noted that the May 2026 update also escalated Jesus Gonzalez Penuelas' existing SDN entry, which dated to May 2021, by adding SDGT status and explicit cartel linkage — a change that compliance teams relying on pre-May 20 list versions would have missed.","heading":"Historical Pattern of Sinaloa Cartel Crypto Designations","severity":"high","sources":[{"credibility":2,"name":"OFAC Sanctions Mexico's Sinaloa Cartel Affiliates — Chainalysis, September 2023","type":"research","url":"https://www.chainalysis.com/blog/ofac-fentanyl-sanctions-mexico-september-2023/"},{"credibility":1,"name":"Treasury Sanctions Mexico- and China-Based Money Launderers Linked to the Sinaloa Cartel — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/jy2439"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel: What Compliance Teams Need to Know — Scorechain","type":"research","url":"https://www.scorechain.com/blog/ofac-sinaloa-cartel-crypto-sanctions-may-2026"},{"credibility":2,"name":"Ethereum Wallet Tied to Sinaloa Cartel Sanctioned by U.S. Government — CoinDesk","type":"news_article","url":"https://www.coindesk.com/business/2023/09/26/ethereum-wallet-tied-to-sinaloa-cartel-sanctioned-by-us-government"}]},{"content":"Any U.S. person or entity that processes a transaction touching a designated Ethereum address is exposed to strict-liability civil penalties under OFAC's sanctions regulations. Compliance teams are advised to immediately update SDN data feeds and screen transaction histories against the six newly designated Ethereum addresses. TRM Labs and Scorechain both note that the laundering typology relies predominantly on ERC-20 stablecoins (USDT and USDC) rather than native ETH, meaning platforms that screen only native ETH transfers may miss exposure to these networks. Additional recommended screening measures include monitoring for beneficial ownership connections to the two front entities — Gorditas Chiwas and Grupo Especial Mamba Negra — and identifying undesignated feeder wallets that interact with the six designated addresses. The secondary sanctions provision under E.O. 13224 extends risk exposure to non-U.S. financial institutions that facilitate transactions involving designated persons, potentially jeopardizing their access to U.S. correspondent banking relationships.","heading":"Compliance Implications for Crypto Platforms","severity":"high","sources":[{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel: What Compliance Teams Need to Know — Scorechain","type":"research","url":"https://www.scorechain.com/blog/ofac-sinaloa-cartel-crypto-sanctions-may-2026"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel Network, Including Six Ethereum Addresses — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/ofac-sanctions-sinaloa-cartel-network-including-six-ethereum-addresses"},{"credibility":2,"name":"OFAC Sanctions Fentanyl Trafficking and Crypto Laundering Network — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/sinaloa-cartel-fentanyl-trafficking-crypto-laundering-may-2026/"}]}],"sources_used":[{"credibility":1,"name":"Treasury Disrupts Sinaloa Cartel Narco-Terrorist Fentanyl Trafficking Operations — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/sb0503"},{"credibility":1,"name":"OFAC Counter Narcotics and Counter Terrorism Designations — May 20, 2026","type":"regulatory","url":"https://ofac.treasury.gov/recent-actions/20260520"},{"credibility":1,"name":"Federal Register — Foreign Terrorist Organization Designations Including Cartel de Sinaloa, February 20, 2025","type":"regulatory","url":"https://www.federalregister.gov/documents/2025/02/20/2025-02873/foreign-terrorist-organization-designations-of-tren-de-aragua-mara-salvatrucha-cartel-de-sinaloa"},{"credibility":1,"name":"District of Colorado — Treasury Department Designates Sinaloa-Connected Mexican National Indicted In Colorado — DOJ","type":"court_filing","url":"https://www.justice.gov/usao-co/pr/treasury-department-designates-sinaloa-connected-mexican-national-indicted-colorado"},{"credibility":1,"name":"Treasury Sanctions Mexico- and China-Based Money Launderers Linked to the Sinaloa Cartel — U.S. Department of the Treasury","type":"regulatory","url":"https://home.treasury.gov/news/press-releases/jy2439"},{"credibility":2,"name":"Ethereum Wallet Tied to Sinaloa Cartel Sanctioned by U.S. Government — CoinDesk, September 2023","type":"news_article","url":"https://www.coindesk.com/business/2023/09/26/ethereum-wallet-tied-to-sinaloa-cartel-sanctioned-by-us-government"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel Network, Including Six Ethereum Addresses — TRM Labs","type":"research","url":"https://www.trmlabs.com/resources/blog/ofac-sanctions-sinaloa-cartel-network-including-six-ethereum-addresses"},{"credibility":2,"name":"OFAC Sanctions Sinaloa Cartel: What Compliance Teams Need to Know — Scorechain","type":"research","url":"https://www.scorechain.com/blog/ofac-sinaloa-cartel-crypto-sanctions-may-2026"},{"credibility":2,"name":"OFAC Sanctions Fentanyl Trafficking and Crypto Laundering Network — Chainalysis","type":"research","url":"https://www.chainalysis.com/blog/sinaloa-cartel-fentanyl-trafficking-crypto-laundering-may-2026/"},{"credibility":2,"name":"OFAC Sanctions Mexico's Sinaloa Cartel Affiliates — Chainalysis, September 2023","type":"research","url":"https://www.chainalysis.com/blog/ofac-fentanyl-sanctions-mexico-september-2023/"},{"credibility":2,"name":"US Sanctions Sinaloa Cartel-Linked Ethereum Addresses — CoinTelegraph","type":"news_article","url":"https://cointelegraph.com/news/us-sanctions-sinaloa-cartel-ethereum-addresses"},{"credibility":2,"name":"US Treasury Sanctions Sinaloa Cartel Over Crypto-Fueled Trafficking — Tokenist","type":"news_article","url":"https://tokenist.com/treasury-sanctions-sinaloa-cartel-crypto-trafficking/"},{"credibility":2,"name":"Treasury Puts Six Ethereum Addresses on the SDN List Over Sinaloa Cartel Fentanyl Laundering — ProCoinNews","type":"news_article","url":"https://procoinnews.com/treasury-puts-six-ethereum-addresses-sdn-list-sinaloa/"}],"summary":"The U.S. Treasury's Office of Foreign Assets Control (OFAC) has designated multiple Ethereum wallet addresses linked to the Sinaloa Cartel's fentanyl trafficking and cryptocurrency money laundering operations. The most recent action, on May 20, 2026, added six Ethereum addresses and 11 individuals to the Specially Designated Nationals (SDN) list, marking the eighth Sinaloa Cartel designation linked to cryptocurrency since September 2023. All designated addresses are subject to strict-liability blocking obligations for U.S. persons and entities.","timeline":[{"date":"2023-09-26","event":"OFAC designates nine Sinaloa Cartel-linked individuals including Mario Alberto Jimenez Castro and adds the first cartel-linked Ethereum address (0x9C2Bc757B66F24D60F016B6237F8CdD414a879Fa) to the SDN list. The wallet had allegedly received approximately $740,000 in deposits to Binance over two months.","source":"CoinDesk; U.S. Department of the Treasury","source_url":"https://www.coindesk.com/business/2023/09/26/ethereum-wallet-tied-to-sinaloa-cartel-sanctioned-by-us-government"},{"date":"2024-01","event":"U.S. DEA offers a $5 million reward for information leading to the arrest of Jesus Gonzalez Penuelas, a Sinaloa Cartel drug kingpin later designated in the May 2026 OFAC action.","source":"U.S. Department of the Treasury","source_url":"https://home.treasury.gov/news/press-releases/sb0503"},{"date":"2024-04","event":"A federal grand jury in the District of Colorado returns an indictment against Rodrigo Alarcon Palomares on three counts of laundering drug proceeds through cryptocurrency.","source":"U.S. Department of Justice, District of Colorado","source_url":"https://www.justice.gov/usao-co/pr/treasury-department-designates-sinaloa-connected-mexican-national-indicted-colorado"},{"date":"2025-02-06","event":"U.S. Secretary of State Marco Rubio designates the Cartel de Sinaloa as a Foreign Terrorist Organization (FTO) and Specially Designated Global Terrorist (SDGT), expanding available enforcement authorities.","source":"Federal Register; U.S. Department of State","source_url":"https://www.federalregister.gov/documents/2025/02/20/2025-02873/foreign-terrorist-organization-designations-of-tren-de-aragua-mara-salvatrucha-cartel-de-sinaloa"},{"date":"2025-02-20","event":"FTO and SDGT designation of Cartel de Sinaloa published in the Federal Register and takes effect.","source":"Federal Register","source_url":"https://www.federalregister.gov/documents/2025/02/20/2025-02873/foreign-terrorist-organization-designations-of-tren-de-aragua-mara-salvatrucha-cartel-de-sinaloa"},{"date":"2026-05-20","event":"OFAC designates 11 individuals and two entities across two Sinaloa Cartel-linked networks and adds six Ethereum addresses to the SDN list. Five addresses attributed to Armando de Jesus Ojeda Aviles; one to Liliana Orozco Romero. Action authorized under E.O. 14059 and E.O. 13224. This is the eighth Sinaloa Cartel designation linked to cryptocurrency since September 2023.","source":"U.S. Department of the Treasury","source_url":"https://home.treasury.gov/news/press-releases/sb0503"}]},"v":1}