#Binance #Bitcoin #USDT #Ethereum #ScamRiskWarning
Mexican drug cartels use Bitcoin, Ethereum, Monero and USDT to acquire key fentanyl ingredients: US regulators
Drug cartels in Mexico have used Bitcoin (BTC), Ethereum (ETH) and other leading crypto assets to acquire key ingredients to produce the deadly synthetic opioid fentanyl, according to a new report from US regulators.
The Financial Crimes Enforcement Network (FinCEN) reports that cartels are purchasing fentanyl precursor chemicals, pill presses, molds and other manufacturing equipment from Chinese companies using cryptocurrency and a range of other methods.
FinCEN is an agency of the U.S. Department of the Treasury that combats money laundering and terrorist financing.
In addition to BTC and ETH, cartels are also reported to be trading in leading stablecoin USDT and privacy coin Monero (XMR), as well as other crypto assets.
FinCEN says drug smuggling organizations will send cryptocurrency to people associated with Chinese suppliers or secondary money senders using wallets hosted by virtual asset service providers.
However, it's not just about cryptocurrencies: the US regulator also notes that cartels rely on banks, money services businesses (MSBs) and online payment systems to purchase fentanyl-producing materials.
FinCEN says many of these transactions are conducted in dollars through U.S. correspondent banks, domestic online payment systems, and U.S. MSB agents in Mexico and China.
Drug cartels also use front companies designed to look like legitimate Chinese exporters and Mexican importers, according to regulators.
More interesting news - subscribe