Key Takeaways:
- FinCEN’s new advisory highlights the use of cryptocurrencies like BTC, ETH, XMR, and USDT in illegal fentanyl trafficking by Mexican cartels.
- The advisory notes that payments for precursor chemicals often end up in hosted wallets of Chinese suppliers via crypto firms and secondary money transmitters.
- This advisory updates previous warnings and aims to assist U.S. financial institutions in detecting and preventing illegal fentanyl-related crypto transactions.
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a new advisory warning about the growing use of cryptocurrencies in illegal fentanyl trafficking.
This advisory highlights the involvement of digital assets like bitcoin (BTC), ether (ETH), monero (XMR), and tether (USDT) by Mexican cartels to buy precursor chemicals and manufacturing equipment from China.
Our sanctions disrupt the flow of money that drug cartels rely on to traffic fentanyl and conduct other illegal activities. By cutting off the cartel leaders from their money, @USTreasury makes it harder for them to bring deadly fentanyl to our streets.
— Secretary Janet Yellen (@SecYellen) June 20, 2024
The payments often end up in the hosted wallets of Chinese suppliers through crypto firms and secondary money transmitters.
The advisory updates previous warnings and aligns with ongoing issues identified in U.S. sanctions and criminal cases.
In October, the Department of Justice charged eight Chinese companies with illegal drug activities.
Fentanyl overdoses are now the leading cause of death for Americans aged 18-45, with raw materials often originating in China.
Mexican Cartels Exploit Bitcoin, Ethereum, Tether To Fund Fentanyl Production | @scoopit https://t.co/hTtOyQ3BsI
— Enzo Calamo (@EnzoCalamo) June 20, 2024
The advisory aims to help U.S. financial institutions detect and prevent illegal fentanyl-related crypto transactions.
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