The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed sanctions on individuals and entities linked to a Mexican cartel involved in drug trafficking and the laundering of illicit proceeds through cryptocurrency networks.
Cartel’s Financial Operations
According to a Treasury press release, the sanctioned individuals and entities lead networks that launder profits from fentanyl and other narcotics trafficking for the Sinaloa Cartel. These laundering schemes utilize blockchain networks to transfer funds back to Mexico.
A multi-year investigation by U.S. authorities revealed that Jesus Gonzalez Penuelas heads the drug trafficking network in the U.S., while Armando de Jesus Ojeda Aviles leads the profit laundering operations on behalf of the Sinaloa Cartel. The cartel, which has been designated a Foreign Terrorist Organization (FTO) by the U.S., is responsible for numerous violent deaths in Mexico and drug-related deaths in America.
The Sinaloa Cartel is run by the sons of imprisoned drug trafficker Joaquin “El Chapo” Guzman Loera, with assistance from the recently sanctioned individuals. While directing drug trafficking operations from Mexico, Aviles relies on associates like Penuelas and Rodrigo Alarcon Palomares to collect cash and facilitate transfers through cryptocurrency addresses. The cartel traffics in drugs including cocaine and methamphetamine.
Legal Action and Cartel Activity
A U.S. District Court in Colorado indicted Palomares in April 2024 for laundering drug proceeds. He was subsequently found guilty on three counts of laundering drug proceeds via cryptocurrency. During his arrest in October 2023, Mexican authorities found weapons and ammunition in his possession. Despite Palomares’ arrest, the Sinaloa Cartel’s trafficking activities have continued to grow.
Aviles’ network includes Mexico-based drug suppliers, money brokers, and coordinators of large wire transfers across the U.S. He is also affiliated with Los Chapitos, a violent faction of the Sinaloa Cartel, and has become the group’s primary money launderer following the murder of his predecessor, Mario Alberto Jimenez Castro.
Additional Sanctions
In addition to Aviles and Penuelas, the Treasury also announced sanctions against Jesus Alonso Aispuro Felix, businessman Alfredo Orozco Romero, Amalia Margarita Romero Moreno, and Liliana Orozco Romero, among others. Most of these associates serve as money brokers, security advisors, and trusted front persons.
The sanctions are part of an effort to protect American communities and citizens. Treasury Secretary Scott Bessent stated, “As President Trump has made clear, this Administration will not allow narco-terrorists to flood our borders with poison.”
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