Catenaa, Friday, Mach 28, 2025-A recent investigation by blockchain analytics firm Chainalysis has revealed cryptocurrency transactions linking Mexican drug cartels to Chinese suppliers of fentanyl precursors.
The findings highlight the growing use of digital assets in transnational criminal enterprises.
The probe, which builds on prior investigations, identified over $37.8 million in suspicious crypto payments between 2018 and 2023 involving China-based chemical traders. Despite China’s cryptocurrency ban, underground financial networks continue to facilitate transactions between fentanyl suppliers and drug cartels.
Chinese money laundering networks, including individuals operating within the U.S., reportedly assist cartels in funneling drug proceeds through crypto exchanges, peer-to-peer transfers, and over-the-counter trades. These actors exploit crypto’s borderless nature, often bypassing traditional financial oversight.
Authorities recently seized over $5.5 million in digital assets as part of a money laundering probe in the Eastern District of Wisconsin. Investigators traced illicit funds to wallets linked to Chinese companies supplying fentanyl precursors, underscoring the role of crypto in the fentanyl trade.
USDT, a stablecoin pegged to the US dollar, has emerged as a preferred asset for cartels, offering stability and ease of cross-border transactions. Criminal networks frequently buy discounted USDT in Mexico and resell it at a higher value in Colombia, laundering illicit drug proceeds.
The US has intensified scrutiny over crypto’s role in illicit finance, with federal investigators examining whether Tether’s USDT has facilitated sanctions evasion.
Meanwhile, a grand jury has indicted multiple individuals for laundering cartel funds through digital assets.
