US Treasury takes action against Chinese crypto wallets in fentanyl crackdown By Proactive Investors

The United States Department of the Treasury has imposed sanctions on several cryptocurrency wallets, intensifying its fight against the illegal fentanyl trade.

The Office of Foreign Assets Control (OFAC) targeted wallets connected to China-based chemical manufacturers and their employees, allegedly involved in fentanyl precursor distribution.

These companies typically “use cryptocurrency transactions to conceal their identities and the location and movement of their funds,” according to U.S. authorities.

Extensive illicit drug network

Deputy Treasury Secretary Wally Adeyemo stated that the move aims to disrupt an extensive illicit drug network.

“We have identified and blocked over a dozen virtual currency wallets associated with these actors, ” said Adeyemo.

The blocked wallets, which received millions of US dollars over hundreds of deposits, illustrate the scope and scale of the operation targeted today.”

Growing concern among lawmakers

OFAC has also designated companies like Hanhong Pharmaceutical Technology and Hebei Crovell Biotech, along with individuals holding wallets for Bitcoin, Ether, USD Coin, Tether, and Tron, as Specially Designated Nationals.

This latest enforcement action comes amid growing concern among lawmakers about the potential role of digital assets in illegal activities.

Last year, fentanyl was estimated to have caused more than 67,000 deaths in the United States alone.

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