DOJ unseals 8 charges related to fentanyl and drug trafficking

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DOJ unseals 8 charges related to fentanyl and drug trafficking

The U.S. authorities took action Thursday against several China-based companies and individuals accused of involvement in the fentanyl trade.

The Justice Department has announced that it has unsealed eight charges related to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales related to precursor chemicals.

While participants used various payment methods, the FBI said that those involved in the crimes incorporated cryptocurrency into their cash flows. Crypto transactions allowed participants to hide their identities and obscure money trails, the paper said.

The agency said that two individuals linked to Hebei Shenghao Import and Export Company - Qingsong Li and Chunhui Chen - held crypto wallets for remittances related to precursor chemicals used in drug production.

The DOJ said that another person, Wei Zhang, had acted in connection with Hubei Guanlang Biotechnology Company. A crypto wallet that facilitated transactions for the sale of opioids and fentanyl precursors is alleged to have been operated by Zhang.

The administration imposes sanctions on several groups involved in drug transactions, including the government's Office of Foreign Assets Control.

The sanctions list restricts a total of 19 cryptocurrency addresses including wallets holding Bitcoin, Ethereum, Tether, and Tron.

Although the Treasury's sanctions seek 28 companies and individuals, the majority of the above digital addresses belong to just five individuals, who are in turn connected to companies involved in the fentanyl and drug trade. Four of those crypto addresses also belong to a Vancouver, Canada-based company called Valerian Labs.

The Treasury has also imposed sanctions against Du Changgen, identified as the leader of the criminal drug syndicate. It said Changgen has personally received cryptocurrency but did not include any cryptocurrency addresses belonging to Changgen on the sanctions list.

The use of cryptocurrency in the fentanyl trade has been a recurring topic for several recent advancements. The DOJ note that it took other steps against Chinese fentanyl companies in June, and some of those companies also utilized crypto payments.

In May 2023, the blockchain analytics firm Elliptic highlighted the issue, leading the U.S. to address it. Elizabeth Warren, the Democratic presidential nominee, will call for action later this month.