Treasury sanctions Mexican nationals and entities tied to CJNG fuel smuggling network

The US Treasury dropped new sanctions on May 1, 2025, targeting three Mexican nationals and two Mexico-based companies linked to fuel theft and smuggling operations run by the Jalisco New Generation Cartel, known as CJNG. The action zeroes in on one of the cartel’s most lucrative, and least discussed, revenue streams: stealing and reselling fuel.

Treasury Secretary Scott Bessent didn’t mince words, calling the cartel’s fuel theft and smuggling operations “cash cows” for CJNG. That framing matters. It signals the US government views these operations not as side hustles but as core financial infrastructure keeping one of the world’s most dangerous cartels running.

Who got sanctioned and why it matters

The Office of Foreign Assets Control designated three individuals: Cesar Morfin Morfin, identified as a CJNG cell leader, along with Alvaro Noe Morfin Morfin and Remigio Morfin Morfin. Two entities also landed on the list: SLA Servicios Logisticos Ambientales, SA de CV and Grupo Jala Logistica, SA de CV.

The designations fall under Executive Orders 14059 and 13224, which address illicit drug trafficking and terrorism financing, respectively.

CJNG’s fuel theft operation, known locally as huachicol, involves stealing crude oil and refined fuel from pipelines and facilities, then smuggling it across the US-Mexico border. The cartel’s broader network generates hundreds of millions of dollars annually from a combination of fuel theft, crude oil smuggling, and fentanyl trafficking.

This isn’t the first time OFAC has gone after CJNG’s fuel operations either. Back on September 10, 2024, the Treasury sanctioned nine individuals and 26 entities affiliated with the cartel’s operations. Those earlier actions targeted networks linked to tens of millions in revenue. The May 2025 round appears to be a continuation of that campaign, pulling on threads that lead deeper into the cartel’s supply chain.

FinCEN sounds the alarm for financial institutions

Alongside the OFAC designations, the Financial Crimes Enforcement Network issued a concurrent alert on the same day. The FinCEN notice laid out the specific methods cartels use in oil smuggling schemes and identified financial red flags that banks and other institutions should watch for.

What this means for crypto and broader financial markets

Here’s the thing: the Treasury’s announcements made zero mention of cryptocurrencies or digital assets. None. The absence suggests that traditional financial channels, banks, shell companies, logistics firms, remain the dominant infrastructure for cartel money movement.

The escalation from September 2024’s 35 designations to these latest sanctions also reveals a methodical approach. US authorities are working their way through the organizational chart, targeting cell leaders and the logistics companies that make smuggling operationally possible.

The Treasury’s strategy here is clear: starve the cartel of revenue by going after its business operations, not just its drug trafficking. Fuel theft generates reliable, high-volume cash flow that’s harder to replace than a single drug shipment. The pace of these designations, two major rounds in less than eight months, suggests the Treasury isn’t planning to let up anytime soon.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.