The United States Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned crypto wallets allegedly linked to individuals and companies involved in the production of fentanyl.
In an Oct. 3 advisory, the U.S. Department of Justice Announced allegations against several China-based chemical manufacturers, as well as many of their employees, who allegedly used crypto transactions as part of an illegal fentanyl precursor distribution scheme. According to US authorities, companies โtend to use cryptocurrency transactions to hide their identities and the location and movement of their funds,โ identifying at least 3 people who had cryptographic wallets for payments.
OFAC added wallets for Bitcoin (btc), ether (ETH), USD Currency (USDC), Belt (USDT) and Tron (TRX) connected Chinese nationals and Valerian Labs to their list of Specially Designated Nationals along with companies such as Hanhong Pharmaceutical Technology and Hebei Crovell Biotech. According to Treasury Undersecretary Wally Adeyemo, the police measure was aimed at disrupting an illicit drug network.
'[W]โWe have identified and blocked more than a dozen virtual currency wallets associated with these actors.โ saying Adeyemo. "The blocked wallets, which received millions of dollars in funds across hundreds of deposits, illustrate the scope and scale of the targeted operation today."
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and Employeeshttps://t.co/f37okHaa6z
โ Department of Justice (@TheJusticeDept) October 3, 2023
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Many lawmakers have urged a crackdown on the distribution of fentanyl in the United States, where the drug was My dear be responsible for more than 67,000 deaths in 2021. Massachusetts Senator Elizabeth Warren, an outspoken critic of digital assets, mentioned potential links between crypto payments and drug trafficking at a May hearing.
The first week of October too marked the tenth year of prison for Ross Ulbricht, founder of online marketplace Silk Road. Many criticized the platform for facilitating drug trafficking by allowing payments with digital assets, but Ulbricht still has a following in the crypto space.
Magazine: US Law Enforcement Agencies Ramping Up Pressure on Crypto-Related Crimes
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