OFAC Blacklists ETH Wallet Operated By Cartel for Illicit Drug Trafficking
In a new round of sanctions, the US Department of Treasury's Office of Foreign Assets Control (OFAC) has added ten more individuals to its blackbook.
According to a September 26 press release, the US government agency disclosed that many of these individuals were affiliated with an international drug trafficking organization run by the Sinaloa Cartel and other narco traffickers.
Making a surprise appearance on the newly updated list is an Ethereum-backed cryptocurrency wallet, which was allegedly used in transferring illicit funds from drug distribution and trafficking.
Providing more details, the Department of Treasury stated that the ETH wallet was controlled by Mario Alberto Jimenez Castro, a Mexican national and a member of the Sinaloa Cartel's Los Chapitos faction.
The indicted subject was said to have been using the virtual currency wallet to launder illicit funds derived from fentanyl sales.
Castro reportedly outsourced cash pickups to US-based couriers. He would then deposit the funds obtained from drug sales into the virtual currency wallet before forwarding them to the Chapitos for continued drug production.
Besides Castro, nine other Mexican-based nationals were indicted in OFAC's release, many also linked to the Sinaloa Cartel.
As a result of the sanctions, all individuals have been mandated to forfeit any properties or interests they possess within the North American nation.
Furthermore, businesses where the accused individuals hold a 50% or greater ownership stake in the US are now subject to asset freezes.
According to data from the Ethereum blockchain web search platform Etherscan, the affected crypto wallet holds 0.0178 ETH, which translates to about $28.24 at the current market valuation.
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