US Sanctions Ethereum Addresses Linked to Sinaloa Cartel

The Sinaloa Cartel has long trafficked fentanyl and other drugs into the United States, and the US State Department designated it a foreign terrorist organization on February 20, 2025. Its money-laundering network converts US drug proceeds into cryptocurrency before sending the funds to Mexico. Because on-chain assets can move quickly across borders, sanctioning the associated addresses will directly affect compliance screening by exchanges and wallet providers.

On May 20, 2026, the US Treasury Department’s Office of Foreign Assets Control, or OFAC, added six Ethereum addresses to its sanctions list while also sanctioning 11 individuals and two entities. Five of the addresses belonged to Ojeda Aviles and one to Alarcon Palomares. The Treasury did not disclose the amount linked to the addresses. A $5 million reward was offered for information leading to the capture of Jesus Gonzalez Penuelas, who was targeted in the same action.