US Treasury Department Sanctions Ethereum Wallet Linked to Sinaloa Cartel

The US Treasury Department has imposed sanctions on an Ethereum wallet associated with Jiminez Castro, a Mexican individual connected to the Sinaloa Cartel’s fentanyl trafficking operations. The Treasury Department announced the sanctions against ten individuals, including fugitives and affiliates of the cartel, in a press release on Tuesday. Castro, who managed an Ethereum wallet used for assisting the cartel, was one of the individuals named in the release.

Castro’s Role in Money Laundering and Fentanyl Sales

The press release stated that Mario Alberto Jimenez Castro reports directly to a deputy of the Chapitos and operates a money laundering organization that employs virtual currency and wire transfers to transfer proceeds from illicit fentanyl sales in the US to Sinaloa Cartel leaders in Mexico. Castro has directed couriers based in the US to collect cash and deposit it into various virtual currency wallets for payment to the Chapitos and reinvestment in fentanyl production.

Inactivity of the Ethereum Wallet

Analyzing Arkham data, researchers discovered that the wallet was activated in January 2023. Etherscan data revealed that at the time of discovery, the wallet contained around 0.018 ETH (equivalent to $28.22). It appears that the wallet has not been used for over 200 days.

No Additional Addresses or Wallets Sanctioned

The authorities have not disclosed any other addresses associated with the cartel nor have they sanctioned any additional wallets apart from Jiminez Castro’s.

Hot Take: US Treasury Targets Crypto-Linked Criminal Activity

The US Treasury Department continues its efforts to crack down on criminal activities involving cryptocurrencies. By imposing sanctions on an Ethereum wallet associated with the Sinaloa Cartel, they aim to disrupt the organization’s money laundering and drug trafficking operations. This action serves as a warning to individuals involved in illicit activities that they will face consequences, even in the realm of virtual currencies. The move also highlights the importance of enhanced regulation and monitoring of cryptocurrency transactions to prevent their misuse for illegal purposes.