Blockchain analytics firm Chain Olisis has revealed the direct financial ties between Mexican drug cartels and Chinese fentanyl precursor suppliers through crypto transactions.
Crypto is “increasingly woven into illegal drug trade,” chain dialysis researchers said in them Report We will analyze the transactions on Wednesday.
The “on-chain fentanyl trade” includes a “wide array” of players, the chain analysis claims.
Connections were tracked primarily through citizen confiscation case Wisconsin led to a $5.5 million code seizing and revealing how Moneylander, a member of the US cartel, transferred funds to Chinese chemical manufacturers.
Despite being from China Encryption is prohibitedChinese manufacturers are the leading source of fentanyl precursors, tablet presses and counterfeiting devices around the world, and have documented deals showing Mexican cartels as the leading buyer.
The report cites how Chinese citizens are “banned from purchasing more than $50,000 in foreign currency” and how to avoid capital management using alternative financial instruments such as crypto and underground banking networks.
Tracked by chain melting, the transaction revealed that the cartel-affiliated networks operate with relatively unsleashed cryptographic technology, quickly moving funds through centralized exchanges and wasted wallets.
Operational patterns prioritize speed over security, making transactions “easy but effective” while still less noticeable by investigators.
Chain Orisis further claims to the Mexican organization, primarily the Sinaloa cartel and the cartel Jalisco Nueva Generasion, and purchases these precursors to produce a US distribution of synthetic opioids containing fentanyl.
The cartel establishes what the authorities call the “bulk cash inter-pipeline” to encourage payments.
Law enforcement officials have identified several components in the crypto-enabled supply chain, including Chinese precursor manufacturers that openly advertise online, postal services that accept crypto, and the darknet market that drives transactions.
Between 2018 and 2023, one group of suspected Chinese-based chemical traders received more than $37.8 million in payments made through Crypto.
Edited by Sebastian Sinclair
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