top of page

U.S. Charges Eight Chinese Companies for Fentanyl Trade Using Cryptocurrency

The U.S. Department of Justice highlighted the use of cryptocurrency to conceal transactions, while the U.S. Treasury has imposed sanctions on individuals and crypto addresses connected to the illegal drug trade.

the U.S. Treasury has imposed sanctions on individuals and crypto addresses connected to the illegal drug trade.
Credit: Shutterstock Copyright: Copyright (c) 2021 Memory Stockphoto/Shutterstock.

WASHINGTON D.C. – The U.S. Department of Justice (DOJ) has charged eight Chinese companies involved in the illicit trade of fentanyl, a dangerous synthetic opioid, using cryptocurrencies.


These companies, as announced on October 3, are facing serious charges related to the production and distribution of fentanyl, methamphetamine, and precursor chemicals. What's noteworthy is that these criminal enterprises incorporated cryptocurrency into their operations.


Details of the case


In particular, the DOJ highlighted two individuals, Qingsong Li, and Chunhui Chen, associated with the Hebei Shenghao Import and Export Company, who used crypto wallets for remittances connected to precursor chemicals used in drug manufacturing.


Another individual, Wei Zhang, was allegedly involved with the Hubei Guanlang Biotechnology Company and used a crypto wallet to facilitate transactions related to fentanyl precursors and opioid additives.


OFAC Sanctions


Simultaneously, the U.S. Treasury's Office of Foreign Assets Control (OFAC) imposed sanctions on multiple parties involved in drug transactions. These sanctions target 19 cryptocurrency addresses, including those holding Bitcoin, Ethereum, Tether, and Tron.


Most of these addresses are linked to five individuals who are associated with companies involved in the fentanyl and drug trade. Notably, four of these addresses also belong to a Canadian company called Valerian Labs. Additionally, the leader of the criminal drug syndicate, Du Changgen, received cryptocurrency personally, but specific crypto addresses for Changgen were not included in the sanctions list.


Comentários


bottom of page