The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has issued an updated advisory to financial institutions in the US, warning them about the increased use of cryptocurrencies by Mexican drug cartels to buy fentanyl ingredients. According to FinCEN, these criminal organizations are using popular digital assets such as Bitcoin (BTC), Ether (ETH), Monero (XMR), and Tether (USDT) “among others” to purchase fentanyl precursor chemicals and manufacturing equipment from Chinese suppliers.
The payments made by the cartels often end up in the hosted wallets of crypto firms at Chinese suppliers, sometimes through a secondary money transmitter. This is an updated warning from FinCEN’s previous advisory in 2019, which reflects problems that had already emerged in sanctions and criminal cases brought by US authorities.
In October, the US Department of Justice charged eight China-tied companies with illegal drug production, distribution, and sales of precursor chemicals. Fentanyl overdoses have become the leading killer for those aged 18-45, with the chemicals used to manufacture the dangerous drug often coming from China and crossing multiple borders before reaching US users.
The DEA has stated that fentanyl is 100 times more potent than morphine, making it a significant threat to public health. As a result, financial institutions in the US are being advised to be vigilant for suspicious transactions related to these cryptocurrencies and to report any potential illicit activity to FinCEN. These advisory aims to disrupt the flow of funds supporting illegal drug trafficking and to protect the integrity of the US financial system.
Source: Coin Desk
