U.S. Treasury sanctions ‘El Chapo’ sons on fentanyl trafficking

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(Bloomberg) — The U.S. Treasury on Monday said it’s sanctioning “Los Chapitos,” the faction of the Mexican Sinaloa Cartel controlled by the sons of jailed cartel leader Joaquín “El Chapo” Guzman that Washington says facilitates illicit fentanyl production and trafficking into the country.

The Treasury’s Office of Foreign Assets Control (OFAC) also said in a statement that it’s designating two fugitive leaders of “Los Chapitos” —  Archivaldo Ivan Guzman Salazar and Jesus Alfredo Guzman Salazar, who are sons of “El Chapo.”

“Ivan’s leadership of Los Chapitos has sparked an alarming spate of violence in Mexico and the United States against civilians, law enforcement and rival cartel members,” according to the statement. “Alfredo, serving as lieutenant to his brother Ivan, has participated in the torture of rivals to solicit information about potential infiltration into Los Chapitos-controlled territory.”

The US State Department is offering a reward of up to $10 million each for information leading to the arrest or conviction of both fugitives.

OFAC also sanctioned a regional network of “Los Chapitos” associates and businesses based in Mazatlan, Sinaloa, led by Victor Manuel Barraza Pablos over accusations including drug trafficking, extortion, kidnapping and money laundering. It also sanctioned Mexican businessman Jose Raul Nunez Rios, several of his businesses and his wife Sheila Paola Urias Vazquez.

The US blocked all property and interests in property of the designated that are in the US or in the possession or control of US persons. Additionally, any entities that are owned, directly or indirectly, by one or more blocked persons are also blocked.

“We are executing on President Trump’s mandate to completely eliminate drug cartels and take on violent leaders like ‘El Chapo’s’ children. Treasury is maximizing all available tools to stop the fentanyl crisis and help save lives,” said Treasury Secretary Scott Bessent said in Monday’s statement.

The Treasury warned that engaging in transactions involving “Los Chapitos” or their allies “may risk the imposition of secondary sanctions on participating foreign financial institutions.”