US Treasury Targets Sinaloa Cartel Crypto Networks in Fentanyl Trafficking Crackdown

The US Treasury Department has taken a significant step in its efforts to disrupt the Sinaloa Cartel's fentanyl trafficking operations by imposing sanctions on individuals, entities, and Ethereum addresses linked to the cartel.

According to officials, some members of the networks converted cash from drug sales into cryptocurrency before transferring funds connected to the Sinaloa Cartel. The Treasury said that this activity highlights the potential for cryptocurrencies to be used in fentanyl-related supply chains.

The sanctions freeze any U.S.-based assets belonging to the listed individuals and entities, and U.S. persons are generally barred from doing business with those named on OFAC's Specially Designated Nationals list. The six Ethereum addresses were also added to the sanctions list, including one that was active in April 2025.

The move places fresh compliance duties on crypto exchanges, custodians, and other regulated platforms. Firms operating under U.S. jurisdiction are required to screen transactions and block activity tied to sanctioned addresses.