U.S. Sanctions Chinese Drug Traffickers, Targets Crypto Addresses
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on several individuals and companies involved in the production and distribution of fentanyl and other drugs. The action, announced on October 3, 2023, also targets cryptocurrency addresses linked to these entities.
This move is part of a broader effort to combat the rising use of cryptocurrency in drug trafficking, particularly involving fentanyl and its precursor chemicals. The sanctioned entities, primarily based in China, include several prominent darknet markets such as Mega Market, OMG!OMG! Market, and Blacksprut. These platforms have been sending significant funds to the identified cryptocurrency addresses.
The OFAC identified cryptocurrency addresses on the Bitcoin, Ethereum, and Tron blockchains, with stablecoins supported by the latter two blockchains being predominantly used. The sanctioned entities received a total of nearly $3.8 million worth of cryptocurrency, reflecting substantial drug trafficking activities. Each of the five individuals targeted received hundreds of thousands of dollars to their respective deposit addresses, mostly through smaller, consistent transactions.
The sanctions and indictments, following a joint investigation by multiple U.S. law enforcement agencies, mark a significant step in the fight against drug trafficking, particularly its intersection with cryptocurrency. The targeted network, centered in China but also involving Canadian entities, highlights the global nature of this illicit activity and the need for international cooperation.
