According to reports, since 2015, a chemical store suspected of being involved in an illegal drug network has received $250 million in cryptocurrency. Chain analysis.
A study by a blockchain analytics firm released on Thursday found that between July 2015 and February 2024, $2.5 billion worth of cryptocurrency flowed into digital wallets associated with suspected chemical stores. About $100 million of these funds went to pharmaceutical plants. In China, Chainalytic claims.
According to Chainalysis, the target of the transfer is believed to be a chemical precursor store or drug production site that produces key ingredients needed to produce illegal drugs such as fentanyl and heroin.
The new report includes thousands of previously unidentified wallets associated with chemical stores, the research firm said in a press release. The data set includes both exchange deposit addresses and several unique on-chain services and wallets.
Chainanalytic’s latest report confirms there is more money in suspected drug-related transactions than reported in previous years’ surveys. In its 2023 report, Chainalysis estimated that approximately $38 million worth of digital tokens flowed into wallets belonging to chemical precursor stores between January 2018 and April 2023, but this was using a smaller data set. .
It is unclear whether Chainalytic’s recent findings reflect an increase in drug-related cryptocurrency transactions, or whether the increased inflows into drug-related wallets are a result of the company’s decision this year to analyze a larger number of wallets over a longer period of time.
The clandestine nature of the illicit drug trade makes it difficult to trace digital funds involved in illicit drug production. China was the largest producer of fentanyl precursors globally in 2019, according to the U.S. Drug Enforcement Administration (DEA). Since then, the DEA has been pressuring China to shut down precursor chemical networks that facilitate the illegal drug trade. Last October, federal officials said prosecution Indicted eight Chinese pharmaceutical companies and their employees for drug-related crimes.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
Elizabeth Napolitano is a data reporter covering business and technology news with a focus on cryptocurrency. Before she joined The Block, Elizabeth reported on BigTech, AI, cryptocurrency, and video games for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs, and US courts. She received a master’s degree in journalism from CUNY. X: Follow her at @LizKNapolitano.