Although cryptocurrencies offer numerous advantages to the average user, their applications can also be seen in criminal circles. One example of this is the illegal fentanyl trade.
The American Financial Crimes Enforcement Network (FinCEN) has recently issued a warning to financial companies in the United States. According to FinCEN, drug cartels use certain cryptocurrencies, such as bitcoin, Ethereum, tether, and monero, to buy raw materials for making fentanyl.
These cartels purchase various chemicals and manufacturing materials from suppliers in China, and payments often end up in the crypto wallets of these Chinese suppliers. FinCEN has advised US financial institutions to be alert to transactions that may be related to fentanyl production.
The warning is an update of a 2019 FinCEN advisory and reflects issues previously raised in sanctions and criminal cases by US authorities. In October, the US Department of Justice indicted eight Chinese-linked companies for their involvement in the illegal production, distribution, and sale of chemicals used to manufacture fentanyl.
Fentanyl is a synthetic opioid that is 100 times more powerful than morphine. It is a dangerous drug that can cause overdose and death, and its chemicals often come from China and pass through multiple borders before reaching the US.
Meanwhile, a police officer in Texas prevented a bitcoin fraud attempt, in which an elderly woman was forced to withdraw $40,000 and put it into a bitcoin ATM. The scammer posed as a Chase Bank employee and arranged for a taxi to take the woman to the bank. However, an alert citizen heard the suspicious phone conversation and alerted the police, who arrived in time to prevent the woman from putting all her money into the machine. The police are now trying to recover the amount deposited and appreciate the attentiveness of the citizen who reported the fraud.