U.S. Senators Elizabeth Warren and Bill Cassidy have called on the Biden administration to provide them with updates on the U.S. government’s efforts to combat the use of cryptocurrency in fentanyl trafficking. According to Warren and Cassidy, decentralized cryptocurrency exchange platforms are facilitating the trafficking of fentanyl precursors supplied by China.
In a joint letter, Massachusetts Democrat Senator Elizabeth Warren, a well-known critic of cryptocurrency, requested that the Biden administration keep them informed about its actions against the use of cryptocurrency in international fentanyl trafficking. Warren and Senator Bill Cassidy claimed that cryptocurrency has played an increasingly significant role in the global fentanyl trade over the past decade.
The letter also highlights that both the Biden administration and the previous Trump administration have recognized the role of cryptocurrency in enabling the illegal drug trade and have taken measures to address this issue. To support their claim, Warren and Cassidy cited two instances where the administrations acknowledged this problem.
The senators’ letter focuses on the alleged involvement of cryptocurrency in assisting fentanyl precursor chemical traders in evading law enforcement detection. They argue that the use of decentralized cryptocurrency exchange platforms allows Chinese-supplied fentanyl precursors to be used in drugs trafficked to the U.S.
“In May 2023, an investigation into 90 China-based companies that supply fentanyl precursors revealed that 90% of them accepted cryptocurrency payments. The same investigation found that these companies collectively received nearly $30 million in crypto payments through cryptocurrency wallets. This amount is enough to purchase the necessary precursors to produce an astonishing $54 billion worth of fentanyl pills,” the letter from the senators stated.
The letter also suggests that the number of cryptocurrency transactions involving these Chinese companies has surged by 450% year-on-year, largely due to their undetectable nature.
While acknowledging that the Biden administration has taken steps to address this issue in the past, Warren and Cassidy have requested an update on the government’s current assessment of cryptocurrency’s role in the illegal drug trade. They also want to know what actions the administration has taken to combat cryptocurrency’s involvement in fentanyl trafficking since December 2021.
Warren and Cassidy believe that the Biden administration should inform them of any challenges or legal limitations it faces in tackling the use of cryptocurrency in illegal drug transactions. The senators expect the administration to provide answers to their questions by June 14, 2024.
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