Home Cryptocurrency US Treasury sanctions crypto wallets as authorities crack down on fentanyl

US Treasury sanctions crypto wallets as authorities crack down on fentanyl

US Treasury sanctions crypto wallets as authorities crack down on fentanyl


The Workplace of Overseas Property Management (OFAC) of america Division of the Treasury has sanctioned crypto wallets allegedly related to people and corporations concerned within the manufacturing of fentanyl.

In an Oct. 3 discover, the U.S. Justice Division introduced indictments in opposition to a number of China-based chemical producers in addition to a lot of their workers, who allegedly used crypto transactions as a part of an unlawful fentanyl precursor distribution scheme. In keeping with the U.S. authorities, the businesses “have a tendency to make use of cryptocurrency transactions to hide their identities and the placement and motion of their funds”, figuring out a minimum of 3 people who held crypto wallets for funds.

OFAC added wallets for Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Tether (USDT) and Tron (TRX) related to Chinese language nationals and Valerian Labs to its listing of Specifically Designated Nationals together with firms together with Hanhong Pharmaceutical Know-how and Hebei Crovell Biotech. In keeping with Deputy Treasury Secretary Wally Adeyemo, the enforcement motion was geared toward disrupting a bootleg drug community.

‘[W]e have recognized and blocked over a dozen digital foreign money wallets related to these actors,” stated Adeyemo. “The blocked wallets, which obtained tens of millions of USD funds over a whole bunch of deposits, illustrate the scope and scale of the operation focused right now.”

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Many lawmakers have urged motion on cracking down on the distribution of fentanyl in america, the place the drug was estimated to be accountable for greater than 67,000 deaths in 2021. Massachusetts Sen. Elizabeth Warren — an outspoken critic of digital property — known as out potential hyperlinks between crypto funds and drug trafficking in a Might listening to.

The primary week in October additionally marked the tenth yr in jail for Ross Ulbricht, the founding father of the net market Silk Highway. Many criticized the platform for facilitating the drug commerce by permitting funds with digital property, however Ulbricht nonetheless has his supporters within the crypto area.

Journal: US enforcement companies are turning up the warmth on crypto-related crime