China's Fentanyl Dealers Make Millions In Crypto

Some companies based in China are suspected of making deadly fentanyl. They have received lots of digital currencies in recent years. Cryptocurrency is a popular way to buy drugs illegally.

Blockchain data platform Chainalysis released a report on Wednesday. The report found crypto addresses linked to Chinese suppliers who send fentanyl ingredients overseas. The report estimates that since 2018, the suppliers have made $37.8 million in crypto.

Drug manufacturers and dealers like to use cryptocurrencies for payment. It is a popular method internationally. A picture in the article shows an example.

Eric Jardine, a cybercrimes research lead at Chainalysis, said our estimate is just the beginning of what's happening with fentanyl on the blockchain. The buying, selling, and trading of fentanyl and related products is a serious problem.

This shows a good chance for police to find out who is causing the fentanyl crisis. They can also predict when more fentanyl trade may happen.

China is selling hazardous products for kids. These products can be dangerous. We need to be careful about what we buy for our children. There have been many reports of dangerous products from China. We should do our research before buying any kids' products.

Jardine said that people tend to miss the fact that cryptocurrency is transparent. This transparency is useful in situations where illegal activities, such as the trade of fentanyl, need to be monitored.

China and India were the top producers of fentanyl precursors in 2019. The Drug Enforcement Agency stated this in 2020.

Chainalysis looked into U.S. Customs and Border Protection data. They discovered something interesting. On-chain transactions to chemical shop addresses matched up with fentanyl seizures at the U.S.-Mexico border.

China denies any illegal drug trafficking with Mexico involving fentanyl. US officials suspect that Chinese traffickers have shifted from making fentanyl to exporting chemicals to Mexican cartels who then make the final drug.

People who move from one country to another are crossing the Rio Grande. They want to be checked by the Border Patrol in El Paso Sector, Texas. They came from Ciudad Juarez in Mexico on May 8, 2023. Herika Martinez took a photograph of this.

Chainalysis researchers found that shipments of supposed fentanyl materials went to areas worldwide suspected of being chemical factories. Places in Latin America, North America, Europe, and Asia were heavily impacted.

The report found crypto-based transactions linked to fentanyl production match DEA data. DEA data shows precursor chemicals are illegally sent to Latin America where fentanyl is made. Fentanyl is then sold in the U.S.

In 2022, CDC reported that more than 100,000 Americans passed away due to drug overdoses.

The analysis states that this process has some steps. Initially, chemical shops from China and India send fentanyl components to Central America and Mexico. Then, drug syndicates package and produce fentanyl products and deliver them to America.

Police found 32,000 fentanyl pills while investigating. The pills are worth $1 million on the street. The NYC Special Narcotics Prosecutor's Office led the investigation. Fox News reported on the story.

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Drug traffickers use crypto to avoid being caught by authorities and this worsens the opioid crisis not only in the US but also globally.

Report from Reuters.