The Federal Bureau of Investigation, in collaboration with the Department of Justice, has announced the uncovering of a large-scale scheme supplying fentanyl precursors to Mexican drug cartels using cryptocurrency. Two Chinese pharmaceutical companies have been held accountable, which, according to the investigation, organized extensive transnational financial flows.
This is reported by Business • Media
- Charges of money laundering and financing criminal activities have been brought against the Chinese pharmaceutical companies Shandong Believe Chemical Company and Shandong Ranhang Biotechnology Ltd, as well as six individuals.
- Payments for the precursors were primarily made in cryptocurrency, complicating the tracking of funds.
- The investigation found that the obtained digital assets were laundered through international financial structures.
Money Laundering Mechanisms via Cryptocurrencies
According to case materials, the companies masked their activities as a legitimate pharmaceutical business. They sold chemicals used for synthesizing fentanyl to Mexican drug cartels, accepting payment in cryptocurrency. The conducted operations allowed for money laundering and transferring funds into fiat through a series of intermediaries and international banks.
In particular, law enforcement intends to confiscate cryptocurrency assets held in accounts on Binance, although the amount is currently estimated at around $26,000.
According to the investigation, one of the main buyers of the precursors was the Gulf Cartel — one of the oldest and most notorious criminal groups in Mexico, which U.S. authorities have designated as a terrorist organization.
Fentanyl: Risks and the Scale of the Problem in the U.S.
The FBI emphasized that this investigation resulted from “historic” cooperation between American authorities and the Ministry of Public Security of China, which has intensified following high-level negotiations.
“Investigators assert that the obtained crypto assets were transferred to wallets controlled by the accused. After that, they were distributed through intermediaries.”
According to estimates from the analytics firm Elliptic, cryptocurrencies play a key role in the supply chains of fentanyl precursors, with the volume of such operations already exceeding $32 million — primarily in Bitcoin and USDT stablecoins.
Fentanyl continues to be one of the leading causes of overdose deaths in the U.S. Even with increased control over direct supplies, the trade in precursors allows criminals to evade existing regulations.
According to official CDC data, the peak of overdose deaths in the U.S. occurred in 2022, with over 107,000 fatalities. In 2023, this figure decreased to approximately 72,800 deaths from synthetic opioids, including fentanyl, and in 2024, it is projected to be around 79,000. However, the problem remains significant at the national level.