tl;dr
Pedro Inzunza Noriega and his son Pedro Inzunza Coronel, alleged leaders of the Beltrán Leyva Organization (BLO), a Sinaloa Cartel faction, were indicted on narco-terrorism and trafficking charges. They are accused of leading a major fentanyl operation trafficking tens of thousands of kilograms into...
Pedro Inzunza Noriega and his son Pedro Inzunza Coronel, alleged leaders of the Beltrán Leyva Organization (BLO), a faction of the Sinaloa Cartel, were indicted on narco-terrorism and trafficking charges for leading a major fentanyl operation trafficking tens of thousands of kilograms into the U.S.
Blockchain investigators traced cartel drug profits laundered through stablecoins like Tether’s USDT, moving funds to Chinese brokers and chemical suppliers. Chainalysis reported $5.5 million in stablecoin transfers connecting U.S. cartel couriers to Chinese fentanyl precursor manufacturers, highlighting a growing “on-chain fentanyl economy.”
TRM Labs found that 97% of surveyed Chinese precursor suppliers accept cryptocurrency, with many linked to wallets flagged for cartel-related activity by U.S. authorities. The U.S. Treasury and OFAC have sanctioned and seized crypto wallets tied to cartel money laundering, including those connected to BLO associates and Chinese suppliers.
The DOJ’s indictment leverages the foreign terrorist organization (FTO) designation to criminalize material support to cartels and enable asset freezes, including crypto wallets. Alongside the indictment, a new Narco-Terrorism Unit was created to utilize comprehensive DOJ resources against the Sinaloa Cartel’s narcotics operations.
The indictment follows a December 2024 raid in Sinaloa that seized 1,500 kilograms of fentanyl, the largest single seizure of the drug to date. This case underscores how Mexican cartels use crypto and stablecoins to launder drug profits and facilitate international supply chains involving Chinese chemical suppliers.
Authorities emphasize the interconnected nature of these threats, where Chinese money laundering networks and crypto-facilitated transactions play a central role in sustaining fentanyl trafficking. U.S. officials have designated multiple crypto addresses linked to cartel activity, intercepting millions in illicit stablecoin flows.
U.S. Attorney Adam Gordon stated, “This indictment is what justice looks like when the full measure of the Department of Justice along with its law enforcement partners is brought to bear against the Sinaloa Cartel,” highlighting a firm stance against crypto-enabled narcotics crime.