Cryptocurrency Payments For Chinese Chemical Companies Supplying Drug Cartels With Fentanyl Ingredients
A recent investigation has shed light on the relationship between Chinese chemical companies and their payment in cryptocurrencies for supplying drug cartels with ingredients to manufacture fentanyl.
Elliptic’s Blockchain Analysis
Elliptic, a blockchain analysis company, has uncovered the large-scale cover-up of some Chinese chemical companies. As they explain, these companies have been receiving cryptocurrency payments in exchange for supplying fentanyl precursors to drug cartels abroad, despite Beijing’s ban.
What is Fentanyl?
For those unaware, fentanyl is a powerful synthetic opioid pain reliever. It is often used as a medication to treat severe pain and can be up to 50 times stronger than heroin. Due to its addictive potential and risk of overdose, it is a highly controlled substance across the world.
Given that cryptocurrencies offer a degree of anonymity, some are using them for illicit activities such as drug trafficking. Elliptic researchers spoke to more than 90 Chinese companies and 90% of these offered payments in cryptocurrencies.
The investigation carried out by Elliptic has revealed the connection between Chinese chemical companies and their payments in cryptocurrencies for supplying drug cartels with ingredients to manufacture fentanyl. Despite Beijing’s ban, these companies have been receiving payments in cryptocurrency in exchange for their precursors. Cryptocurrencies offer a certain level of anonymity, which makes them attractive to those engaging in illegal activities.