U.S. Treasury Sanctions Crypto Wallet Linked to Global Crime Network, Continues Anti-Drug Push
Summary:
The U.S. Department of Treasury's Office of Foreign Assets Control (OFAC) has sanctioned a cryptocurrency wallet linked to a global criminal network, including ten people tied to the Sinaloa Cartel. The Treasury is addressing illicit fentanyl traffic and its role in the U.S. opioid crisis. Actions against cryptocurrency mixer Tornado Cash have also been taken, further demonstrating the Treasury's commitment against financial crimes tied to international security issues.
The U.S. Department of Treasury's Office of Foreign Assets Control (OFAC) has sanctioned a cryptocurrency wallet believed to be linked to a significant global criminal network and placed it on its Specially Designated Nationals register. As declared on September 26, the Department has imposed sanctions on 10 individuals, several of whom are connected with the Sinaloa Cartel. Mario Alberto Jimenez Castro, a Mexican national linked via an Ethereum wallet, is among those added to the list. The treasury noted that Jimenez Castro is accountable to a deputy of the Chapitos and heads a money laundering operation that utilizes crypto and wire transfers among other methods, to move revenue from illegal fentanyl sales in the U.S. to leaders of the Sinaloa Cartel in Mexico. As per Etherscan data, the Ethereum wallet held a balance of approximately 0.018 Ether ($28.22) and there was no activity for over 200 days. The latest round of sanctions, which did not include any additional wallet addresses, are the Treasury's answer to the illegal fentanyl traffic, which is aggravating the opioid crisis in the U.S. Under Secretary Brian Nelson emphasized the commitment of the Treasury and the Administration to aggressively target criminal networks that threaten international security and flood communities with lethal drugs.
Earlier, the OFAC sanctioned individuals associated with North Korea's Lazarus Group. The Treasury has also mentioned the Lazarus Group as a reason for adding cryptocurrency mixer service Tornado Cash to its Specially Designated Nationals register in August 2022. Roman Storm, co-founder of Tornado Cash, was arrested on charges relating to money laundering and sanctions breaches. Despite criticism over the Treasury's actions on Tornado Cash from many leaders and policymakers in the industry, a judge in August largely upheld the government's position in a motion for summary judgment after a lawsuit was filed by six people supported by the Coinbase crypto exchange.
Published At
9/26/2023 4:12:39 PM
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