U.S. Treasury Sanctions Crypto Wallets Tied to Illegal Fentanyl Production
Summary:
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned numerous cryptocurrency wallets linked to illegal fentanyl production organizations. Several China-based chemical manufacturers and their employees were indicted for using digital currencies to hide their identities and mask an illicit fentanyl precursor distribution scheme. Additionally, law enforcement agencies are intensifying their efforts to regulate crypto-related crimes. The enforcement action is intended to disrupt an illegal drug network, which was held partially responsible for over 67,000 deaths in the U.S. in 2021.
The United States Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on digital currency wallets thought to be linked to entities and individuals engaged in fentanyl manufacturing. On October 3, indictments against several employees and chemical manufacturers, all based in China, were disclosed by the U.S. Department of Justice. These accused parties supposedly leveraged cryptocurrency transactions for an illicit scheme to disseminate fentanyl precursors. U.S. authorities claim these companies employed digital currency transactions to hide their identities, monetary movement, and location, pinpointing three individuals holding crypto wallets for payment purposes. Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Tether (USDT) and Tron (TRX) wallets connected to Chinese citizens and Valerian Labs have been included in OFAC's Specially Designated Nationals list alongside companies like Hanhong Pharmaceutical Technology and Hebei Crovell Biotech. Wally Adeyemo, Deputy Treasury Secretary, asserted that the enforcement action was intended to impede an illegal drug circuit.
Adeyemo stated, "We've identified and obstructed multiple digital currency wallets linked to these actors. These blocked wallets have received millions in USD funding via countless deposits, highlighting the vast scale of the operation we're targeting today."
Countless law policymakers have insisted on action to regulate the circulation of fentanyl within the U.S., marking the drug as responsible for over 67,000 deaths in 2021. Senator of Massachusetts, Elizabeth Warren, who has been openly critical of digital assets, drew attention to possible connections between drug trafficking and crypto payments during a hearing in May.
In the same week, Ross Ulbricht, founder of the online marketplace Silk Road completed his tenth year of incarceration. Silk Road was widely criticized for enabling drug trades by accepting digital asset payments, yet Ulbricht retains his supporters within the crypto community.
In connection, the U.S. enforcement agencies have been escalating their efforts to curb crime related to cryptocurrencies.
Published At
10/3/2023 9:57:45 PM
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