U.S. Senators Bill Cassidy, a Republican from Louisiana, and Elizabeth Warren, a Democrat from Massachusetts, demanded that the Biden administration provide an update on measures taken to combat the illegal use of cryptocurrencies in the fentanyl trade.
The bipartisan senators wrote a letter Wednesday asking for immediate updates on “measures to crack down on the use of cryptocurrencies by drug traffickers.”
According to a 2023 report by blockchain analytics firm Elliptic, precursors produce the majority of fentanyl smuggled into the US, imported from China. In addition, 90% of fentanyl precursors accepted payments in cryptocurrencies.
“Cryptocurrency wallets used by these companies received thousands of payments totaling just over $27 million. The number of transactions increased by 450% year-on-year.” – According to the study.
The senators found that fentanyl, a synthetic opioid, was the cause of several deaths in the U.S. among people aged 18-45.
Criminals and drug traffickers say the digital age is blocking traditional ways of handling funds and exchanging them. As a result, they are turning to cryptocurrencies as the main means of transferring money in exchange for illicit drug trafficking.
“Over the past decade, cryptocurrencies have played an increasingly important role in the global fentanyl trade,” the letter – the letter emphasized. This asset class is the primary mode of payment for both fentanyl production and trade, and is therefore considered a threat by both parties.
2022. The White House published a fact sheet announcing new AML enforcement in the digital asset ecosystem.
This was in recognition that “digital assets have facilitated the rise of cybercriminals using ransomware; drug sales and money laundering for drug trafficking organizations; and the financing of terrorist activities.”
In February 2023. The Drug Enforcement Agency seized $1.8 million worth of cryptocurrencies from six Binance accounts linked to drug traffickers.
The senators also demanded answers on the Administration’s current challenges and future initiatives in this area.
