US Treasury Sanctions Sinaloa Cartel-Linked Network for Crypto Money Laundering

The US Treasury has taken a significant step in its ongoing campaign against fentanyl trafficking, sanctioning a network linked to the Sinaloa Cartel for its alleged involvement in money laundering.

The operation, which was designated by the Office of Foreign Assets Control (OFAC) on May 20, involved converting fentanyl sales proceeds into cryptocurrency and wiring them south of the border. The Treasury's action adds six Ethereum addresses to the Specially Designated Nationals (SDN) list, making it illegal for US entities to transact with these addresses.

The designation marks a notable evolution in how OFAC approaches cartel finance, as blockchain addresses are now being targeted alongside traditional financial tools such as bank accounts and shell corporations. This development reflects the Treasury's increasing focus on cryptocurrency infrastructure in its efforts to combat fentanyl trafficking.