Elliptic Exposes Network Facilitating Illicit Fentanyl Trade
An investigation by blockchain analytics firm Elliptic has uncovered a network of 100 suppliers involved in the illegal fentanyl trade. These suppliers smuggle precursor chemicals required for fentanyl synthesis. Cryptocurrencies, including Bitcoin, Ethereum, Tron, and Monero, have been used by criminals to facilitate payments between buyers and suppliers, with Mexico as the final destination.
Report Highlights Role of Cryptocurrencies in Illegal Trade
In its report, Elliptic delves into the chemical supply chain that fuels the drug epidemic. The investigation reveals that these suppliers accept cryptocurrency payments, making transactions easily accessible. The report identifies 80 groups with 144 cryptocurrency addresses linked to fentanyl precursor suppliers on blockchains such as Bitcoin, Ethereum, Tron, and Monero.
$32 Million Received Through Cryptocurrency Payments
Cryptocurrencies play a significant role in this illicit trade. According to Elliptic’s research, suppliers received more than $32 million through Bitcoin, Tether on Tron, and Tether on Ethereum. The data shows a 450% year-on-year growth in payments received by fentanyl precursor suppliers since 2021. Bitcoin leads with $19 million, followed by Tether on Tron with $9 million and Tether on Ethereum with $4 million.
Escalating Drug Crisis
These suppliers also provide chemicals for producing other illegal drugs. The illicit drug market faces a severe crisis as billions of dollars worth of drugs flood the market, including fentanyl, methamphetamine, and ecstasy. This exacerbates the global drug crisis with a potential street value exceeding $50 billion.
Hot Take: Crypto Fuels Illicit Fentanyl Trade
According to Elliptic’s investigation, the illicit fentanyl trade is facilitated by a network of suppliers using cryptocurrencies for payments. This exposes the significant role of Bitcoin, Ethereum, Tron, and Monero in enabling illegal transactions. The report highlights the alarming growth in payments received by fentanyl precursor suppliers and the escalating drug crisis worldwide. It is crucial for authorities to address this issue and implement measures to combat the use of cryptocurrencies in illicit activities.
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