Chinese chemicals companies suspected of supplying the base substances to produce fentanyl to overseas drug cartels have earned tens of millions of dollars in cryptocurrencies, according to two blockchain research firms, highlighting the criminal use of digital assets in China despite Beijing’s ban, reports the South China Morning Post. Elliptic, a London-based blockchain analytics firm, said in a report published on Wednesday that it had identified more than 90 China-based chemicals companies that were willing to sell them fentanyl precursors and to take cryptocurrencies as a payment method.
The cryptocurrency wallets used by these companies have received thousands of payments over the past few years, totalling more than $27 million, according to the firm. The most popular crypto token accepted by these suppliers is bitcoin, followed by the stablecoin Tether (USDT), Elliptic said in the report.
In a separate report also published on Wednesday, blockchain research firm Chainalysis said crypto addresses associated with China-based sellers of precursor chemicals used to make fentanyl, a powerful narcotic that has become part of a widespread opioid crisis in the US, have received more than $37.8 million worth of cryptocurrency since 2018.