The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned a member of Mexico’s Sinaloa Cartel for using an Ethereum wallet to move funds related to the smuggling of fentanyl into the US. The sanctioned individual, Jimenez Castro, allegedly directed US-based couriers to collect cash and deposit it into virtual currency wallets for direct payment to the Sinaloa Cartel faction known as Los Chapitos, as well as for reinvestment in fentanyl production. The Treasury stated that the Los Chapitos faction is responsible for a significant portion of the illicit fentanyl and other deadly drugs smuggled into the US. The action by the Treasury reflects its ongoing efforts to combat the opioid crisis and target criminal enterprises involved in drug trafficking.
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