{"id":65755,"date":"2023-09-26T17:48:33","date_gmt":"2023-09-26T21:48:33","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/ofac-blacklists-eth-wallet-operated-by-cartel-for-illicit-drug-trafficking\/"},"modified":"2023-09-26T17:48:35","modified_gmt":"2023-09-26T21:48:35","slug":"ofac-blacklists-eth-wallet-operated-by-cartel-for-illicit-drug-trafficking","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=65755","title":{"rendered":"OFAC Blacklists ETH Wallet Operated By Cartel for Illicit Drug Trafficking"},"content":{"rendered":"
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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.\u00a0<\/p>\n

According to a September 26\u00a0press 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.<\/p>\n

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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.\u00a0<\/p>\n

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.<\/p>\n

The indicted subject was said to have been using the virtual currency wallet to launder illicit funds derived from fentanyl sales.<\/p>\n

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.\u00a0<\/p>\n

Besides Castro, nine other Mexican-based nationals were indicted in OFAC’s release, many also linked to the Sinaloa Cartel.<\/p>\n

As a result of the sanctions, all individuals have been mandated to forfeit any properties or interests they possess within the North American nation.<\/p>\n

Furthermore, businesses where the accused individuals hold a 50% or greater ownership stake in the US are now subject to asset freezes.<\/p>\n

According to data from the Ethereum blockchain web search platform\u00a0Etherscan, the affected crypto wallet holds 0.0178 ETH, which translates to about $28.24 at the current market valuation.\u00a0<\/p>\n

Applauding the crackdown, Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson was full of praise for the arrests made.\u00a0<\/p>\n

Nelson stated that this disruption is a testament to the US government’s strong intentions to stop illicit fentanyl trafficking.\u00a0<\/p>\n

Moreso, Nelson noted that the government is intentional in its commitments towards plugging a hole in the floodgates of illicit drugs entering the country.\u00a0<\/p>\n

You Win Some, You Lose Others<\/h2>\n

The US government has become especially interested in the crypto space in the last two years.\u00a0<\/p>\n

The Department of Treasury previously sanctioned over-the-counter (OTC) cryptocurrency traders who aided the infamous North Korean Lazarus Group in converting millions of dollars worth of crypto to fiat currency.\u00a0<\/p>\n

According to the statement\u00a0released\u00a0in April 2023, three individuals were impacted for “providing material support to the Lazarus Group.”\u00a0<\/p>\n

However, it has not been smooth sailing for the crackdown on the illicit use of cryptocurrencies by US govt agencies.\u00a0<\/p>\n

The agency responsible for drug law enforcement reportedly lost $45,000 in Tether to a scam attack known as ‘address poisoning.’\u00a0<\/p>\n

According to a\u00a0Forbes report, the Drugs Enforcement Agency (DEA) seized over $500,000 in cryptocurrencies from two Binance accounts suspected of laundering funds generated from drug sales.<\/p>\n

Aiming to transfer these funds to the US Marshals Service, it sent a test amount of $45. A crypto hacker picked up on this and created a wallet address similar to the recipient’s by changing the first five and last four characters of the Marshal’s account.\u00a0<\/p>\n

He then forwarded a token via airdrop to the DEA to make the crypto address look genuine.\u00a0<\/p>\n

Following this, the DEA personnel unknowingly forwarded approximately $55,000 to the manipulated address. Unfortunately, the discrepancy was only detected and reported after the funds were withdrawn.<\/p>\n

Although the DEA has already sought the assistance of the FBI, the hacker responsible remains at large.<\/p>\n<\/p><\/div>\n