Decline in Crypto Income for Darknet Fentanyl Vendors
A recent press release from blockchain analytics firm TRM Labs revealed that darknet drug dealers selling fentanyl have experienced a decline in their incomes. The powerful opioid has been linked to heavy addiction and overdoses.
TRM Labs has been monitoring over 100 known vendors for fentanyl and its precursors, and they noticed a slowdown in crypto inflows to the addresses associated with these vendors throughout 2023. In January, the vendors received close to $2 million in crypto, but by October, this number had dropped to below $1 million.
While the illegal business is still growing year-on-year, the pace of growth has decreased. TRM reported that fentanyl-related money flows have been growing at an average of 155% a year since 2019, but this growth rate dropped to 60% in 2023.
The U.S. government crackdown on fentanyl vendors is believed to be the reason behind this decline. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 82 individuals involved in fentanyl trade in 2023, significantly more than in previous years.
The latest sanctions targeted Chinese manufacturers of fentanyl and its precursors, as well as the Mexico-based Sinaloa cartel. As a result, the cartel reportedly prohibited the production and trafficking of illegal opioids under its control. The Department of Justice also seized large amounts of fentanyl precursors mailed from China in October.
Hot Take: Impact of Government Crackdown on Darknet Fentanyl Trade
The decrease in crypto income for darknet fentanyl vendors signals the impact of government actions on illicit drug trade. The increase in sanctions by the U.S. government, particularly targeting Chinese manufacturers and Mexican cartels involved in fentanyl production, has led to a decline in income for these illegal operations. This demonstrates the effectiveness of targeted sanctions and law enforcement efforts in disrupting darknet drug markets and preventing the flow of dangerous opioids like fentanyl into communities. As a result, it is crucial for authorities to continue their crackdown on these illicit activities to protect public health and safety.
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