The U.S. government has sounded the alarm on a troubling new trend in the drug world. According to a recent report, Mexican crime groups are now using cryptocurrencies, such as Bitcoin, to purchase materials for making fentanyl from China, making it harder for officials to stop the deadly drug from entering the United States.
By using digital currencies, these cartels can hide their identity and bypass traditional financial monitoring systems, which makes it easy for them to send money across borders without getting caught.
In the Thursday report, the U.S. Treasury’s FinCEN highlights a complex web of transactions, with payments often landing in the digital wallets of Chinese suppliers managed by cryptocurrency firms. In some cases, secondary money transmitters add another layer of complexity, making it even harder to track.
This digital shift has presented a challenge for U.S. regulatory bodies. It also shows that banks, online payment companies, and government agencies need to work together better to disrupt these illicit financial flows.
The stake could get higher. Fentanyl, which is 100 times stronger than morphine has become the leading cause of death among Americans aged 18-45. The Drug Enforcement Administration (DEA) warns of a severe public health crisis, with the drug’s raw materials primarily sourced from China before being processed and distributed in the U.S.
However, in response to this, U.S. authorities are looking closer at crypto transactions linked to drug trafficking. Recent actions, including charges against eight China-linked companies, have already taken place by the U.S. Department of Justice
Also Read: Germany Continues Large Bitcoin Transfers to Major Exchanges
