U.S. Allegations: Chinese Firms Employed Crypto Payments in Operating Fentanyl Network

Police & Regulations
Oct 5, 2023 at 08:30 am

The U.S. Department of Justice has recently pressed charges against eight companies, accusing them of participating in the unlawful creation, distribution, and trade of precursor chemicals fundamental to drug production, all while employing cryptocurrency for financial operations.

In a recent crackdown, the U.S. Department of Justice (DOJ) has targeted a cluster of Chinese enterprises and their employees allegedly linked to the manufacturing and trafficking of fentanyl. According to official sources, this network heavily relied on cryptocurrency for its financial transactions.

Running in parallel with the criminal proceedings, the U.S. Treasury's Office of Foreign Assets Control (OFAC) has enforced sanctions against a roster of Chinese individuals, coupled with the identification of 16 associated crypto wallets.

During a press conference, Wally Adeyemo, Deputy Secretary of the Treasury, stressed:

 "We've pinpointed and frozen more than a dozen virtual currency wallets tied to these individuals. The frozen wallets, which received millions of USD through hundreds of transactions, underscore the magnitude and extent of the operation targeted today."

The DOJ has directed its efforts towards a network comprising 28 businesses and individuals in Florida, alleging their involvement in the production of fentanyl and methamphetamine, as well as the illicit trade of precursor chemicals crucial for drug manufacturing.

The DOJ's statement underscores how these companies routinely turn to cryptocurrency transactions to obscure their identities and the movement of their financial assets.

The convergence of cryptocurrency and the fentanyl trade has attracted significant attention, with Senator Elizabeth Warren (D-Mass.) advocating for fresh legislation aimed at disrupting this avenue of digital payments.

Read more: Evergrande's Ripple Effect: How a Chinese Giant's Crisis Shook the Crypto Landscape

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