US Treasury Cracks Down Drug Lord’s Crypto Money-Laundering Ring Linked To Sinaloa Cartel

The US Treasury announced on Wednesday a fresh round of sanctions targeting the Sinaloa Cartel, citing growing evidence that elements of the organization are using crypto to support fentanyl trafficking and launder drug proceeds. 

Crypto To Move Fentanyl Proceeds

Treasury noted that the Sinaloa Cartel is among the oldest and most powerful drug trafficking groups in Mexico. The United States has identified the organization as a significant foreign narcotics trafficker since April 15, 2009. 

According to the agency, the cartel’s operations include illicit fentanyl sales, which generate proceeds that must then be moved, cleaned, and ultimately transmitted back into the cartel’s network.

A central figure in the Treasury’s announcement is Armando de Jesus Ojeda Aviles, known as Ojeda Aviles, who the US describes as the leader of a crypto laundering network tied to the cartel’s drug trafficking operations. 

Treasury alleges that Ojeda Aviles coordinates the collection of large amounts of cash in the United States—cash that Treasury links to fentanyl and other illicit drug sales. 

From there, the Treasury says he facilitates the conversion of that bulk cash into cryptocurrency. The agency’s concern is that the resulting digital-asset funds are then transferred for the cartel’s use in Mexico.

Ethereum Addresses Added In Sanctions

Treasury also identified Jesus Alonso Aispuro Felix, described as a close associate and the network’s chief money broker. Treasury’s release says Aispuro Felix is responsible for brokering large transfers of drug proceeds using crypto addresses. 

Another associate highlighted in the release is Rodrigo Alarcon Palomares, who the Treasury alleges facilitated money pickups in the United States on behalf of the network. 

The agency further points to a legal development involving Alarcon Palomares: in April 2024, a federal grand jury in the US District Court for the District of Colorado returned an indictment against him on three counts of laundering drug proceeds through cryptocurrency.

As part of the sanctions action, Treasury said the list of additions includes six Ethereum network addresses. The agency added that five of those addresses are connected to Ojeda Aviles.

Featured image created with OpenArt, chart from TradingView.com