Recently, the Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned several individuals with ties to the Sinaloa drug cartel. A press release from the Department of the Treasury on September 26th provided details of the individuals and the implications of the sanction.
According to an article from Borderland Beat, an Ethereum wallet linked to a Sinaloa cartel affiliate named Jimenez Castro was sanctioned by the OFAC. The wallet allegedly received around $740,000 to Binance within two months.
An Ethereum wallet, as explained on the Ethereum website, is similar to a material wallet and contains access to account controls, proof of identity, and other functionality.
The press release from the Department of the Treasury revealed that the OFAC sanctioned 10 individuals, including Jimenez Castro, who were linked to the Sinaloa cartel. The Sinaloa cartel is described as one of the world's most damaging transnational criminal organizations and is heavily involved in smuggling Fentanyl across the border.
Jimenez Castro, a Sinaloa cartel money launderer, is known for his significant involvement in moving profits from illicit fentanyl sales in America to Mexico. He reportedly uses cryptocurrency to facilitate these operations. The Department of State is offering a $1 million reward for information leading to the arrest and conviction of Jimenez Castro.
The sanctions imposed by the OFAC have several implications. One of these implications is that the property within the US or controlled by US persons of the sanctioned individuals must be blocked and reported to OFAC.
The Office of Foreign Assets Control, responsible for implementing economic sanctions, oversees actions mainly involving nations, groups, drug traffickers, and terrorists. These sanctions, whether broad or targeted, utilize asset freezes and trade barriers to achieve foreign policy and national security objectives.
