U.S. Treasury sanctions Ethereum wallet tied to Sinaloa drug cartel
- Sinaloa, one of the largest drug cartels in the world, is a major supplier of fentanyl in the U.S.
- The sanctioned wallet has facilitated transactions worth tens of thousands of dollars.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) added ten individuals, tied to illegal narcotics trading, to its sanctions list on 26 September. One of these individuals owned an Ethereum [ETH] wallet.
The Ethereum wallet with the address “0x9c2” belongs to a man associated with Mexico’s Sinaloa drug cartel. The Mexican gang is considered one of the largest drug cartels in the world and is a major supplier of fentanyl in the U.S.
The individual owning the Ethereum wallet is a money launderer. According to the authorities, the individual,
reports directly to a Chapitos deputy and operates a money laundering organization that uses virtual currency and wire transfers, among other methods, to transfer proceeds from illicit fentanyl sales in the United States to Sinaloa Cartel leaders in Mexico.
No interaction with sanctioned addresses allowed
The sanction freezes any assets held by the said Ethereum wallet in the U.S. It also bans Americans from transacting with this wallet.
Technically, the sanctioned address can still be used but is illegal to transact with. This means that cryptocurrency exchanges that connect with the wallet address may have to face legal consequences.