WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Los Chapitos, a powerful faction of the Mexico-based Sinaloa Cartel that facilitates illicit fentanyl trafficking and production. Los Chapitos-controlled laboratories are responsible for introducing fentanyl in counterfeit pills manufactured by the Sinaloa Cartel and trafficked to the United States. Gunmen linked to the Sinaloa Cartel were also involved in the October 18, 2024 killing of former U.S. Marine Nicholas Quets in Sonora, Mexico.
Additionally, OFAC is designating two fugitive leaders of Los Chapitos, Archivaldo Ivan Guzman Salazar and Jesus Alfredo Guzman Salazar, sons of incarcerated Sinaloa Cartel leader Joaquin “El Chapo” Guzman Loera. Through its Narcotics Rewards Program, the U.S. Department of State is offering a reward of up to $10 million each for information leading to the arrest and/or conviction of Archivaldo Ivan Guzman Salazar and Jesus Alfredo Guzman Salazar.
“Los Chapitos is a powerful, hyperviolent faction of the Sinaloa Cartel at the forefront of fentanyl trafficking into the United States,” said Secretary of the Treasury Scott Bessent. “At the Department of the Treasury, 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.”
OFAC also sanctioned a regional network of Los Chapitos associates and businesses based in Mazatlan, Sinaloa, Mexico, that engages in drug trafficking, extortion, kidnapping, and money laundering. Today’s action was coordinated with the U.S. Drug Enforcement Administration (DEA).
Today’s action is pursuant to Executive Order (E.O.) 14059, which targets the proliferation of illicit drugs and their means of production, and pursuant to E.O. 13224, as amended, which targets terrorists and their supporters. This is OFAC’s ninth action taken against the cartels, international drug trafficking, and human smuggling across the southern border since the beginning of the Administration.
SINALOA CARTEL
The Sinaloa Cartel is one of the oldest and most powerful cartels in Mexico and represents a major threat to the United States. The Sinaloa Cartel was identified by the United States as a significant foreign narcotics trafficker on April 15, 2009 pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). On December 15, 2021, OFAC also designated the Sinaloa Cartel pursuant to E.O. 14059. The Sinaloa Cartel has trafficked fentanyl, methamphetamine, cocaine, and other illicit drugs into the United States and engaged in widespread violence. On February 20, 2025, the U.S. Department of State designated the Sinaloa Cartel as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT).
FLOOD OF FENTANYL: LOS CHAPITOS
Collectively referred to as Los Chapitos, the four sons of El Chapo—Archivaldo Ivan Guzman Salazar (Ivan), Jesus Alfredo Guzman Salazar (Alfredo), Ovidio Guzman Lopez (Ovidio), and Joaquin Guzman Lopez (Joaquin)—have consolidated control over and assumed leadership of the Sinaloa Cartel through their self-named Los Chapitos faction. Although Ovidio and Joaquin are now in U.S. custody, Ivan and Alfredo remain fugitives in Mexico. Los Chapitos’ dominance overfentanyl trafficking is largely the result of the faction’s capacity to procure precursor chemicals, while also controlling production via its secret laboratories in Sinaloa. Since September 2024, turf wars between Los Chapitos and its rivals have engulfed the Mexican state of Sinaloa, resulting in the deaths of over 600 people.
Los Chapitos is being sanctioned pursuant to E.O. 14059 and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, the Sinaloa Cartel.