U.S. sanctions Wednesday targeted an alleged fentanyl network tied to Mexico’s powerful Sinaloa cartel, with the Treasury Department saying the designations include people, a Chihuahua restaurant and a security firm connected to cartel fentanyl trafficking and financial activity.
The sanctions were announced by the U.S. Treasury’s Office of Foreign Assets Control, which said it targeted more than a dozen people as well as businesses. Treasury also said its actions are meant to sever the designated targets’ ability to operate through the U.S. financial system and to block any assets in the United States.
Among those named was Jesús González Penuelas, a fugitive known as Chuy González, whom Treasury described as involved in trafficking narcotics into the U.S. and laundering funds for the cartel. The announcement said the State Department has been offering a $5 million reward for information leading to his arrest since 2024.
Treasury also imposed sanctions on Armando de Jesus Ojeda Aviles, according to the announcement, alleging that he helps launder proceeds from fentanyl and other drugs on behalf of the cartel.
In addition to people, the sanctions targeted a Chihuahua restaurant, Gorditas Chiwas, which Treasury said is controlled by Alfredo Orozco Romero. Treasury said the designations apply not only to individuals but also to business entities it linked to the cartel’s illicit operations.
Treasury said the sanctions cut off the targets from the U.S. banking system, restrict their ability to work with Americans, and block U.S. assets. The announcement said it was unclear how embedded some of the designated individuals and firms are in the U.S. financial system.
Treasury Secretary Scott Bessent said in a statement that Treasury “will continue to target terrorist cartels and their fentanyl trafficking networks to protect our communities and Keep America Safe.”
The announcement put the fentanyl threat in stark terms, saying fentanyl is a powerful opioid and describing it as the deadliest drug in the U.S. today. It also cited the scale of the U.S. overdose problem, saying drug overdose deaths increased by about 520% from 1999 to 2023, while adding that overdose deaths have been declining since 2022, dropping nearly 3% from 2022 to 2023, according to the latest CDC data.
The announcement also described the supply-chain and manufacturing role in trafficking, saying Mexico and China are the primary sources of fentanyl and fentanyl-related substances trafficked into the U.S., and that nearly all precursor chemicals needed to make fentanyl come from China. It said companies that make the precursors routinely use fake return addresses and mislabel products to avoid detection by law enforcement.
It added that the U.S. and Mexico coordinated on identifying Wednesday’s targets, saying Mexico’s financial intelligence unit worked with Treasury and the U.S. Drug Enforcement Administration. The announcement also said President Donald Trump has repeatedly offered to send the U.S. military after the cartels, and that his administration designated the Sinaloa cartel as a terrorist group in 2025.