VERIFIEDBy Xavier Rivera· ·1 min read
OFAC Sanctions Six Ethereum Addresses Tied to Sinaloa Cartel
OFAC sanctioned six Ethereum addresses linked to a Sinaloa Cartel money laundering network that converted drug proceeds into crypto as part of action against 11 individuals and two entities. The move raises compliance risks for crypto exchanges and virtual asset service providers by highlighting the cartel's use of blockchain technology.
Source:CoinTelegraph
TL;DRAI · 60 sec read
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned six Ethereum addresses tied to a Sinaloa Cartel-linked money laundering network that allegedly converted drug proceeds into cryptocurrency.
OFAC added the addresses to its Specially Designated Nationals list, a US sanctions list of people, entities and assets subject to blocking restrictions, on Wednesday. The action formed part of sanctions against 11 individuals and two entities connected to two Sinaloa Cartel financial networks.
Treasury said one network, led by Armando de Jesus Ojeda Aviles, collected bulk cash in the US from fentanyl and other drug sales before allegedly converting the money into cryptocurrency for transfer to the cartel in Mexico. The Sinaloa Cartel is allegedly using blockchain technology to launder its illicit fiat money proceeds, according to OFAC.
The sanctions highlight how cartel-linked money laundering networks are using digital assets alongside cash couriers and front businesses. This raises sanctions compliance risks for crypto exchanges and other virtual asset service providers.
Treasury did not identify which crypto platforms or protocols were allegedly used by the network. The listed Ethereum addresses create sanctions exposure for exchanges, wallet providers and other crypto firms that screen blockchain transactions.
OFAC has added six new Ethereum addresses to the sanctions list as part of the effort targeting the financial networks.
OFAC added the addresses to its Specially Designated Nationals list, a US sanctions list of people, entities and assets subject to blocking restrictions, on Wednesday. The action formed part of sanctions against 11 individuals and two entities connected to two Sinaloa Cartel financial networks.
Treasury said one network, led by Armando de Jesus Ojeda Aviles, collected bulk cash in the US from fentanyl and other drug sales before allegedly converting the money into cryptocurrency for transfer to the cartel in Mexico. The Sinaloa Cartel is allegedly using blockchain technology to launder its illicit fiat money proceeds, according to OFAC.
The sanctions highlight how cartel-linked money laundering networks are using digital assets alongside cash couriers and front businesses. This raises sanctions compliance risks for crypto exchanges and other virtual asset service providers.
Treasury did not identify which crypto platforms or protocols were allegedly used by the network. The listed Ethereum addresses create sanctions exposure for exchanges, wallet providers and other crypto firms that screen blockchain transactions.
OFAC has added six new Ethereum addresses to the sanctions list as part of the effort targeting the financial networks.
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