Mexican Drug Cartels Use Cryptocurrency for Fentanyl Production, Says US Regulator
Drug cartels in Mexico have reportedly utilized cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to procure essential materials for producing the deadly synthetic opioid fentanyl, according to a recent report from a US regulatory agency.
The Financial Crimes Enforcement Network (FinCEN), part of the US Department of the Treasury responsible for combating money laundering and terrorism financing, disclosed that these cartels purchase fentanyl precursor chemicals, pill presses, die molds, and other manufacturing equipment from Chinese suppliers.
These transactions involve cryptocurrencies such as Bitcoin and Ethereum, as well as popular stablecoins like USDT and privacy-focused coins such as Monero (XMR).
READ MORE: FCA Arrests Two for Running Unregistered Crypto Exchange in UK
In addition to crypto, FinCEN highlighted that drug-smuggling organizations also rely on traditional financial channels, including banks, money services businesses (MSBs), and online payment processors, to acquire materials used in fentanyl production.
Transactions often involve US dollars processed through correspondent banks, domestic online payment processors, and agents of American MSBs based in Mexico and China.
According to the regulator, cartels employ shell companies that masquerade as legitimate Chinese exporters and Mexican importers to further obfuscate their illicit activities.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
