Bitcoin and Tether: The Cryptocurrency of Choice for Chinese Fentanyl Vendors
Unveiling the Cryptocurrency Connection
Blockchain analytics startup Elliptic recently made a disquieting discovery. Chinese companies selling precursors to fentanyl, a powerful opioid, primarily accept cryptocurrency payments. In particular, Bitcoin (BTC) and Tether (USDT) dominate the transactions. This finding highlights the uphill battle law enforcement faces in preventing the use of cryptocurrency in illegal transactions in the digital age.
Understanding the Market Dynamics
According to Elliptic’s data, a staggering 90% of Chinese enterprises dealing in fentanyl precursors accept cryptocurrencies as payment. Furthermore, some of these businesses also supply the ingredients needed to manufacture other synthetic opioids, such as amphetamines and methamphetamines.
The Surge in Cryptocurrency Transactions
There’s been a dramatic uptick in the number of transactions linked to these businesses. Over $27 million in cryptocurrency has been sent to wallets associated with these chemical suppliers. This amount could potentially buy the precursors required to produce tablets with a jaw-dropping street value of $54 billion.
Bitcoin and Tether: The Leading Cryptocurrencies
Among these transactions, bitcoin payments accounted for 66% of the total. Tether transactions on the Tron network made up another 21%. In addition, 13% of all payments were made using tether transfers on the Ethereum network, leaving a mere 1% of transactions for all other cryptocurrencies.
Promoting Transparency and Safeguarding the Bitcoin Market
Upon uncovering these illicit activities, Elliptic immediately notified cryptocurrency exchanges about the involvement of specific cryptocurrency wallets. The objective is to enhance transparency and protect the Bitcoin market from potential money laundering.
In China, fentanyl precursors are often bought using Bitcoin, underlining the relentless challenge of halting illegal activity online. This investigation by Elliptic serves as a stark reminder of the complexities that come with tracking and regulating the ever-evolving landscape of cryptocurrency transactions.
