The U.S. Department of the Treasury announced on Monday (June 9) that it has officially designated the “Los Chapitos” faction, a branch of the Sinaloa Cartel in Mexico, as a Specially Designated Global Terrorist (SDGT) entity. The group is accused of leading illegal fentanyl manufacturing and trafficking, posing a serious threat to domestic security in the United States. This faction is controlled by the son of the imprisoned cartel leader, known as “El Chapo,” Joaquín “El Chapo” Guzmán.
This sanction was carried out by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury based on the anti-terrorism executive order issued by President Trump. It marks the first time that the “Los Chapitos” faction has been designated by the U.S. as a terrorist organization, leading to a comprehensive upgrade in related legal and enforcement measures.
The core individuals named in this sanction include Iván Guzmán Salazar, son of “El Chapo,” and Jesús Alfredo Guzmán Salazar.
The Treasury Department statement pointed out that Iván leads violent actions by the Los Chapitos, affecting civilians, law enforcement personnel, and members of rival drug cartels. As his deputy, Alfredo is involved in torturing rival individuals for intelligence gathering and maintaining territorial control.
The State Department simultaneously announced a reward of up to $10 million for each of these individuals and is seeking information to apprehend them.
This sanction action also covers the transportation and money laundering networks of the Los Chapitos faction in the area of Mazatlán, Sinaloa, including local leader Victor Manuel Barraza Pablos and multiple companies involved in drug trafficking, kidnapping, extortion, and money laundering.
Additionally, Mexican businessman Jose Raul Nunez Rios and his wife along with related companies have also been included in the sanctions list.
The Treasury Department emphasized that all designated individuals and entities will have their assets and interests in the U.S. or controlled by U.S. persons completely frozen, and foreign financial institutions engaging with them may face secondary sanctions.
As early as 2009, the entire Sinaloa Cartel was listed under the Foreign Narcotics Kingpin Designation Act, and in 2021, sanctions were expanded under Executive Order 14059, with the Los Chapitos faction previously only individually sanctioned for fentanyl trafficking.
This marks the first time the U.S. has explicitly designated the Los Chapitos faction under terrorism laws, demonstrating a significant escalation in Washington’s crackdown on the organization’s violence and transnational drug crimes.
Treasury Secretary Scott Bessent stated, “We are fully implementing President Trump’s directives, completely eradicating drug cartels and targeting violent leaders like the Los Chapitos to stop the fentanyl crisis and save American lives.”
In the midst of Washington pressuring Mexico to combat fentanyl trafficking, Ovidio Guzmán, son of El Chapo, was extradited to the U.S. in September 2023. In July of the same year, another member of the Guzmán family, Joaquín Guzmán, and Ismael “El Mayo” Zambada, co-founder of the Sinaloa Cartel, were also arrested in El Paso, Texas.
El Chapo Guzmán was arrested for the third time on January 8, 2016, in Mexico and subsequently extradited to the U.S. On July 17, 2019, he was sentenced to life in prison plus 30 years.