Senator Warren Calls for Accountability in Combating Crypto Use in Fentanyl Drug Trade
By Sujha Sundararajan
U.S. Senators Bill Cassidy, a Republican from Louisiana, and Elizabeth Warren, a Democrat from Massachusetts, have joined forces to demand answers from the Biden Administration regarding efforts to combat the illegal use of cryptocurrencies in fentanyl drug trafficking.
In a letter penned on Wednesday, the bipartisan Senators urged for an immediate update on the government’s actions to crack down on drug traffickers’ exploitation of crypto.
According to a report by blockchain analytics firm Elliptic in 2023, the majority of fentanyl trafficked into the U.S. is produced using precursors imported from China. Furthermore, 90% of the payments for these fentanyl precursors were made using cryptocurrencies.
“The cryptocurrency wallets used by these companies have received thousands of payments, totaling just over $27 million. The number of transactions has increased by 450% year-on-year,” revealed the study.
Fentanyl, a synthetic opioid, has been responsible for numerous deaths in the U.S., particularly among individuals aged 18 to 45, according to the Senators.
Cryptocurrencies: A Key Tool for Money Laundering in the Illegal Drug Trade
Criminals and drug traffickers have found that the digital age presents obstacles to traditional methods of handling and exchanging funds. Consequently, they have turned to cryptocurrencies as the primary means of moving money in exchange for illegal drugs.
“The role of cryptocurrency in the global fentanyl trade has become increasingly prominent over the past decade,” emphasized the Senators in their letter.
Both parties recognize cryptocurrencies as a significant threat, as they have become the primary mode of payment in both the manufacturing and trafficking of fentanyl.
In 2022, the White House released a fact sheet announcing enhanced enforcement of anti-money laundering measures in the digital asset ecosystem. This was a response to the realization that “digital assets have facilitated the rise of ransomware cybercriminals, narcotics sales and money laundering for drug trafficking organizations, and the funding of activities of rogue regimes.”
In February 2023, the Drug Enforcement Agency seized $1.8 million in cryptocurrencies from six Binance accounts linked to drug traffickers.
The Senators have called on the Drug Enforcement Administration and the Office of National Drug Control Policy to provide information on the actions taken regarding the role of cryptocurrencies in fentanyl trafficking since December 2021.
Additionally, they have requested answers regarding the current challenges faced and the future initiatives of the Administration in addressing this issue.
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