The US Treasury’s Office of Foreign Assets Control is targeting cryptocurrency wallets used by the Sinaloa Cartel for fentanyl trafficking. On September 26, 2023, OFAC sanctioned Mario Alberto Jiménez Castro, a money launderer, and a specific Ethereum wallet address linked to him. That address received approximately $740,000 over 11 months. This marks the first time OFAC publicly tied a Mexican cartel to a specific crypto address.
Jiménez Castro laundered fentanyl proceeds using crypto and wire transfers, routing funds back to cartel leadership in Mexico. The sanction means any compliant exchange or DeFi platform must block transactions involving that address or face severe penalties.
The broader sanctions campaign, under Executive Order 14059, has targeted over 290 individuals and entities tied to the Sinaloa Cartel’s synthetic opioid operations. The cartel uses Bitcoin and Ether to buy fentanyl precursor chemicals from Chinese suppliers. Blockchain analytics firm TRM Labs reports that crypto-denominated fentanyl sales growth slowed to around 60% in 2023, suggesting sanctions are creating friction. For the crypto industry, each new OFAC wallet designation raises compliance burdens and fuels the narrative linking crypto to illicit finance.