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Drug cartels in Mexico used Bitcoin (BTC), Ethereum (ETH) and other top crypto assets to purchase key ingredients for making the lethal synthetic opioid fentanyl, according to a new report from a US regulator.
The Financial Crimes Enforcement Network (FinCEN) says cartels purchase fentanyl precursor chemicals, pill presses, die molds and other manufacturing equipment from Chinese companies using crypto and a variety of other methods.
FinCEN is an agency at the U.S. Department of the Treasury that polices money laundering and terrorism financing.
In addition to BTC and ETH, the cartels also reportedly transact with the top stablecoin USDT and the privacy coin Monero (XMR), among other crypto assets.
FinCEN says the drug-smuggling organizations will send crypto to people affiliated with Chinese suppliers or to secondary money transmitters with hosted wallets at virtual asset service providers.
What do you think of this news, do you think it is true? or it is simply propaganda by regulators against Bitcoin, and therefore other shitcoins such as Ethereum, Monero and USDT
Anyway, if this is true, it is surely only a tiny percentage of the money used to acquire fentanyl or the ingredients to produce it, we already know that most money laundering is done with fiat money.
221 sats \ 0 replies \ @jgbtc 23 Jun
Breaking news: they also use automobiles for transportation. The horror.
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Its a good thing the USD is never used for any kind of drugs, or illicit activity. Imagine if it was, how news worthy it would be.
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I think there are definitely cartels and people using Bitcoin for illicit activity.
It isn't the wisest route unless you are doing coinjoins/mixing. Furthermore, there are agents that can track these activities - so if people are doing illegal activity - it is better often to use USD/Monero or some other privacy coin. Many eyes are on bitcoin.
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37 sats \ 0 replies \ @guts 23 Jun
That's why Chainalisys love transparency of Bitcoin, cartels don't care if that money it's tracked even knowing there are superior private chains as Monero.
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We just need the addresses and then we can confirm this
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