Senator Warren Calls for Information on Efforts to Combat Crypto Use in Fentanyl Drug Trafficking
By Sujha Sundararajan
Updated: May 31, 2024 03:56 EDT | 1 min read
In a joint effort, U.S. Senators Bill Cassidy, a Republican from Louisiana, and Elizabeth Warren, a Democrat from Massachusetts, are urging the Biden Administration to provide an update on the steps being taken to combat the illicit use of cryptocurrencies in fentanyl drug trafficking.
The bipartisan Senators penned a letter on Wednesday, demanding immediate information on “actions to crackdown on drug traffickers’ exploitation of crypto.”
According to a report from blockchain analytics firm Elliptic in 2023, the majority of fentanyl trafficked into the U.S. is manufactured using precursors imported from China. Additionally, 90% of the payments for these fentanyl precursors are 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 among individuals aged 18-45 in the U.S., according to the Senators.
Cryptocurrencies: The Primary Tool for Money Laundering in the Illegal Drug Trade
Due to the digital age, traditional methods of handling and exchanging funds have become more difficult for criminals and drug traffickers. As a result, they have turned to cryptocurrencies as the primary means to move money in exchange for illegal drugs.
“Over the past decade, cryptocurrency has played an increasingly prominent role in the global fentanyl trade,” emphasized the letter.
Both parties recognize that cryptocurrencies have become a primary mode of payment in the manufacturing and trafficking of fentanyl, and they view this as a significant threat.
In 2022, the White House released a fact sheet announcing new measures to combat money laundering in the digital asset ecosystem. This was in response to the recognition 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 Administration seized $1.8 million in cryptocurrencies from six Binance accounts linked to drug traffickers.
The Senators have requested responses from the Drug Enforcement Administration and the Office of National Drug Control Policy regarding the actions taken to address the role of cryptocurrencies in fentanyl trafficking since December 2021.
They have also demanded answers regarding current challenges and the Administration’s future initiatives in this area.
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