The United States Sanctions Cryptocurrency Money Laundering Network Linked to the Sinaloa Drug Cartel

BlockBeats News, May 21st, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions on two money laundering networks associated with the Sinaloa drug trafficking organization, involving over a dozen individuals and entities. One of the networks is accused of converting cash proceeds from fentanyl and other drug sales into cryptocurrency and transferring them to senior members of the Mexican Sinaloa cartel.

OFAC stated that this network conducted money laundering through cash collection in the U.S., cryptocurrency transfers, and transactions with Mexican brokers associated with the "Los Chapitos" faction. "Los Chapitos" is controlled by "El Chapo" Guzman's sons Ivan and Alfredo Guzman Salazar. The sanctioned individuals include Armando de Jesus Ojeda Aviles, who is allegedly responsible for the money laundering network, and another drug trafficking and money laundering organization leader Jesus Gonzalez Penuelas.

OFAC mentioned that the organization would collect significant amounts of cash in the U.S., exchange it for cryptocurrency, and then transfer it back to Mexico. Under the sanctions, assets of the relevant individuals and entities within the U.S. will be frozen, and U.S. citizens and businesses are prohibited from engaging in transactions with them.