Eight companies and their employees have been charged by the U.S. Department of Justice (DOJ) for illegal fentanyl operations.
According to DOJ, these companies used cryptocurrency to move money to facilitate the production, distribution and sales of the chemical substance. These companies use cryptocurrency transactions to hide their identity, and location and move money undetected.
Today, the U.S. Treasury Office of Foreign Assets Control (OFAC) claimed that at least 16 crypto wallets are associated with the operation. The office also sanctioned the list of Chinese nationals along with other criminal cases.
In the words of Wally Adeyemo, the Treasury Deputy:
“Over a dozen virtual currency wallers have been identified to be associated with these actors… the blocked wallets have received millions in USD, and over hundred in deposits, illustrating the scope and scale of the illegal operation”
Meanwhile, Attorney General Merrick Garland in a press release, said “We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China.”
He added, “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
On May 31, 2023, U.S. Senator, Elizabeth Warren called for a legislative approach to break the supply chain operation of these Chinese businesses.
Warren, however, suggested that her digital asset anti-money laundry bill will be of great benefit to uncovering illegal money laundering activities and promoting Know-your-customer (KYC) rules to crypto participants.
At the time, research data from Elliptic, that over 90 Chinese companies were in the business of shipping fentanyl and taking crypto in exchange for the substance.
Although cryptocurrency is being used for quite many illegal practices, employing a legislative approach to help promote good health might be a good approach.
Also Read: Rep.Beyer Introduced New Legislation to Regulate Digital Assets
