Ethereum Wallet Linked to Sinaloa Cartel Faces U.S. Government Sanctions

Police & Regulations
Sep 28, 2023 at 11:50 am

Officials have disclosed that the wallet is integral to a money laundering scheme that funnels gains from fentanyl transactions to the leaders of the Sinaloa cartel in Mexico.

The U.S. Treasury's OFAC has imposed sanctions on an Ethereum wallet linked to Jimenez Castro, a Mexican individual with connections to the Sinaloa cartel.

Castro is among the 10 individuals featured on OFAC's list of sanctions, part of a broader counter-narcotics endeavor, as detailed in the official roster available on the OFAC website.

The wallet under scrutiny became operational in January of the present year and garnered approximately $740,000 in deposits on the Binance platform within a span of two months, as per data sourced from Arkham.

As stated in an official press release from the U.S. Treasury, Jimenez Castro is identified as the head of a money laundering organization that employs various means, including virtual currency and wire transfers, to channel proceeds from illicit fentanyl sales in the United States to the leaders of the Sinaloa Cartel in Mexico.

Earlier this year, OFAC also took action against a set of cryptocurrency wallets associated with the North Korean government.

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