OFAC crypto sanctions case shown through Ethereum address screening, blockchain analytics panels, and compliance alerts.

Treasury Puts Six Ethereum Addresses on the SDN List Over Sinaloa Cartel Fentanyl Laundering

By Isaac • May 21, 2026 11:37 am • Comments

The U.S. Treasury Department announced on May 20 that OFAC sanctioned more than a dozen individuals and entities linked to the Sinaloa Cartel and its fentanyl trafficking operations.

Six Ethereum addresses were added to the Specially Designated Nationals (SDN) list as part of the action, according to blockchain intelligence firm TRM Labs.

That makes this a concrete compliance event for every exchange, wallet provider, and virtual asset service provider screening on-chain transactions.

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The U.S. Treasury identified Armando de Jesus Ojeda Aviles as the head of a network that laundered narcotics proceeds for the cartel.

According to U.S. Treasury: Treasury’s May 20 announcement said OFAC sanctioned more than a dozen individuals and entities tied to two Sinaloa Cartel-linked networks involved in fentanyl trafficking and money laundering. The crypto-specific section identified Armando de Jesus Ojeda Aviles as the head of a network laundering narcotics proceeds for the cartel.

Treasury said the network collected bulk cash in the United States from fentanyl and other drug sales, then converted that cash into cryptocurrency for transfer to the Sinaloa Cartel in Mexico. Treasury also named Jesus Alonso Aispuro Felix as the chief money broker responsible for brokering bulk transfers through digital currency addresses, while Rodrigo Alarcon Palomares was tied to money pickups and an April 2024 indictment involving cryptocurrency laundering charges.

Treasury announced on May 20, 2026 that OFAC sanctioned more than a dozen individuals and entities linked to the Sinaloa Cartel and fentanyl trafficking. Treasury said Armando de Jesus Ojeda Aviles led a network laundering proceeds from fentanyl and other narcotics trafficking for the Sinaloa Cartel.

Treasury said Ojeda Aviles coordinated bulk cash collection in the United States and facilitated conversion of that cash into cryptocurrency for transfer to the Sinaloa Cartel in Mexico.

Jesus Alonso Aispuro Felix was named as the network’s chief money broker, responsible for brokering bulk transfers through digital currency addresses.

Rodrigo Alarcon Palomares was tied to money pickups and an April 2024 indictment involving cryptocurrency laundering charges.

TRM Labs confirmed that five of the six designated Ethereum addresses were attributed to Ojeda Aviles, while one belonged to Liliana Orozco Romero.

According to TRM Labs: TRM Labs reported that OFAC designated 11 individuals and two entities connected to the Sinaloa Cartel and added six Ethereum addresses to the SDN list. TRM said five of the six addresses were attributed to Armando de Jesus Ojeda Aviles, while one was attributed to Liliana Orozco Romero.

Its analysis described the multi-wallet pattern as consistent with fragmentation used to layer illicit funds. TRM also placed the addresses in a larger compliance framework: crypto is one component of cartel laundering infrastructure, used alongside bulk cash networks, trade-based mechanisms, and Chinese money laundering organizations.

For exchanges and other virtual asset service providers, the practical consequence is direct sanctions-screening exposure around the listed Ethereum addresses and their nearby transaction relationships. Treasury said Jesus Alonso Aispuro Felix was the network’s chief money broker and brokered bulk transfers of drug proceeds through digital currency addresses.

TRM Labs reported that the action added six Ethereum addresses to the SDN list. TRM Labs reported that five of the six Ethereum addresses were attributed to Armando de Jesus Ojeda Aviles and one was attributed to Liliana Orozco Romero.

For compliance teams, the practical consequence is direct sanctions-screening exposure around those listed Ethereum addresses and their nearby transaction relationships.

Chainalysis described the full laundering cycle in more detail.

According to Chainalysis: Chainalysis reported that U.S. authorities sanctioned a Sinaloa Cartel-run money laundering network that moved cash proceeds from fentanyl sales across the U.S.-Mexico border using cryptocurrency. The analysis said the target was a Los Chapitos-linked laundering cell that converted street-level fiat drug proceeds into crypto to bypass the traditional banking system.

Chainalysis described a cycle in which couriers collected cash, brokers converted it into stablecoins, wallets swapped between stablecoins on decentralized exchanges, and funds were forwarded to centralized exchanges, likely for cash-out. That detail makes the enforcement story broader than one press release.

It shows how stablecoins, Ethereum addresses, decentralized exchange swaps, and centralized exchange compliance all meet in the same sanctions case. TRM Labs said cryptocurrency was one component of cartel laundering infrastructure, layered alongside bulk cash networks and Chinese money laundering organizations.

Chainalysis reported that the network converted cash from U.S. fentanyl sales into crypto for transfer across the U.S.-Mexico border. Ethereum is the second-largest crypto asset by market capitalization, and OFAC sanctions involving Ethereum addresses qualify as broad crypto enforcement news.

Treasury announced on May 20, 2026 that OFAC sanctioned more than a dozen individuals and entities linked to the Sinaloa Cartel and fentanyl trafficking.

That chain of custody touches stablecoin issuance, DEX liquidity pools, and centralized exchange on-ramps in a single enforcement case.

Ethereum is the second-largest crypto asset by market capitalization, and OFAC actions targeting its addresses carry weight across the entire ecosystem.

Every major exchange already screens against the SDN list. The addition of six specific Ethereum wallets means automated compliance systems should be flagging associated clusters now.

The broader signal is clear. Sanctions enforcement around crypto has moved past general policy warnings and into named addresses, named individuals, and specific on-chain laundering patterns that compliance teams have to monitor in real time.

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