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Senators Investigate Role of Cryptocurrencies in Fentanyl Trade
A bipartisan pair of senators in the United States have sent an investigation to government agencies into efforts to combat the use of cryptocurrency in the illicit fentanyl market.
Senators Elizabeth Warren (D-Mass.) and William Cassidy (R-La.) they sent a letter to the Office of National Drug Control Policy et al Drug Enforcement Administrationwhich reads:
[We] Request an update on the Biden administration’s actions to crack down on drug traffickers’ exploitation of cryptocurrencies to grow their businesses and launder ill-gotten gains
The senators argue that cryptocurrencies have become increasingly important in the fentanyl trade, with much of the drug ending up in the United States for consumption. The letter, addressed to ONDCP Director Rahul Gupta and DEA Administrator Anne Melissa Milgram, asks the agencies to provide responses by June 14.
Questioning the trading of cryptofentanyl
Senators Demand Information on Importance of Cryptocurrency in Drug Trafficking; new initiatives to be implemented in the next 12 months; metrics to measure success; and the challenges their offices faced in these efforts. The senators cited data showing that Chinese companies supplying fentanyl precursors have received nearly $30 million in cryptocurrency, which they say is enough to produce $54 billion worth of fentanyl.
Warren has been before criticized for citing misunderstood data in its anti-cryptocurrency agenda. In a letter addressing illicit cryptocurrency activity, he cited an article that had incorrectly stated the extent of Hamas’ use of cryptocurrency. Although the Wall Street Journal later corrected the article she cited, Warren has not responded publicly.
This development follows reports in late April that a collaboration between law enforcement agencies in India and the United States led to the discovery of a cryptocurrency drug ring worth $360 million.