Fentanyl Trade In China: Sen. Elizabeth Warren Points to Crypto Payments

Highlighting a startling statistic, the Massachusetts senator revealed that crypto transactions linked to Chinese fentanyl brokers surged by an alarming 450% in the previous year, as reported by Elliptic.

During a United States Senate Banking Committee hearing on China, Massachusetts Sen. Elizabeth Warren referenced a report from blockchain analytics firm Elliptic to highlight a potential link between cryptocurrency payments and Chinese companies that supplied precursors for the opioid fentanyl. According to Elliptic‘s report, published on May 23, approximately 90% of the China-based firms involved in fentanyl precursor supply were open to accepting cryptocurrencies, including Bitcoin, for payment, indicating possible connections to “illegal drug transactions.”

Warren Raises Concerns Over Crypto Transactions Tied to Chinese Fentanyl Brokers

Sen. Warren cited an Elliptic report showing a 450% increase in crypto transactions tied to Chinese fentanyl brokers. Elizabeth Rosenberg, assistant secretary for terrorist financing and financial crimes at the U.S. Treasury Department, supported Warren’s argument, stating that the pseudonymous nature of crypto transactions likely facilitated payments for drug brokers. Furthermore, Rosenberg confirmed that crypto has become one of the primary payment methods for Chinese companies.

Elizabeth Warren to Reintroduce Digital Asset Anti-Money Laundering Act

Senator Warren plans to reintroduce legislation targeting regulatory loopholes related to payments in the illegal drug trade. Moreover, Warren plans to reintroduce the Digital Asset Anti-Money Laundering Act after previously introducing it in 2022.

In 2021, synthetic opioid overdoses, including fentanyl, caused over 70,000 deaths in the US. The authorities shut down Silk Road, a platform facilitating illegal drug transactions, in 2013. Founder Ross Ulbricht received a life sentence. (satake-usa.com)

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.