Fentanyl is a highly potent synthetic opioid that is 50 to 100 times stronger than morphine. It is primarily used for pain relief and anesthesia but has been increasingly used to produce illicit drugs in recent years. The drug has caused a massive epidemic in the United States, with over 50,000 deaths in 2019 alone. And now, it has been uncovered that Chinese labs are selling Fentanyl ingredients for millions in crypto.
The rise of cryptocurrency has led to an increase in nefarious activities such as drug trafficking, and Fentanyl is no exception. Chinese labs have been selling Fentanyl ingredients to drug traffickers in exchange for Bitcoin or other cryptocurrencies, which makes it challenging for law enforcement agencies to track and investigate the transactions.
According to a report by the Center for Advanced Defense Studies (C4ADS), Chinese labs are producing and selling a variety of chemicals used to manufacture synthetic drugs. These labs are primarily located in the Guangdong province in southern China, which has been an important hub for the drug trade for decades.
The report found that Chinese labs are selling Fentanyl ingredients such as fentanyl precursors and analogues to drug traffickers in the United States, Canada, and Mexico. These ingredients are then used to produce synthetic opioids and other drugs that are sold on the black market.
The report also highlights how the transactions are conducted using cryptocurrency, which makes it difficult for law enforcement agencies to trace and investigate. Cryptocurrency provides anonymity to both the buyer and seller, making it an attractive option for illegal transactions.
The report estimates that Chinese labs earned between $1.7 billion to $5.5 billion from the sale of Fentanyl ingredients between 2013 and 2019. This shows that the profits made from the illegal drug trade are significant, which explains why drug traffickers continue to take risks despite the severe consequences.
The Chinese government has taken action to curb the production and sale of Fentanyl. In April 2019, China added all Fentanyl-related substances to its list of controlled substances, making it illegal to produce, sell, or distribute them. The move was seen as a positive step towards combating the Fentanyl epidemic.
However, the report suggests that the impact of these measures may be limited, as Chinese labs continue to produce and sell Fentanyl ingredients through loopholes in the law. The report calls for better regulation and enforcement of these laws to prevent the illicit trade in Fentanyl ingredients.
The report also highlights the importance of international cooperation and coordination in combating the Fentanyl epidemic. It suggests that countries need to work together to regulate and monitor the trade in chemicals used to produce synthetic drugs. Close cooperation between law enforcement agencies is also needed to track and investigate these transactions.
In conclusion, the illicit trade of Fentanyl ingredients by Chinese labs highlights the need for better regulation and enforcement of drug laws. The use of cryptocurrency to conduct these transactions adds another layer of complexity to an already complicated situation. International cooperation and coordination are crucial to combating the Fentanyl epidemic and preventing further harm caused by this deadly drug.
New research from cryptocurrency-tracing firm Elliptic has shown that Chinese chemical producers are accepting cryptocurrencies such as Bitcoin and Tether as payment for fentanyl ingredients they sell to drug cartels around the world. Elliptic’s blockchain analysis highlights more than 90 Chinese chemical companies advertising fentanyl “precursor” chemicals on the open web, with 90% accepting cryptocurrency payments. Elliptic researchers estimate that these firms received just over $27m in transactions over the past five years, mostly since 2020, as transactions have increased 450% in the past year. This supply of ingredients is just one element of a much larger crypto-enabled fentanyl supply chain, likely sizing in the tens of billions of dollars. The US Treasury Department recently imposed sanctions on four Chinese men and two chemical labs, Wuhan Shuokang Biological Technology and Suzhou Xiaoli Pharmatech, for their role in selling fentanyl precursors to Mexican drug cartels.
