Is Crypto Growth in Connection With Fentanyl Trade Growth?
On May 24th, US Senate published a letter from Senators Elizabeth Warren and Bill Cassidy about the alarming relationship that they believe cryptocurrency has with the growing fentanyl epidemic.This letter was sent to Director Rahul Gupta with the Office of National Drug Control Policy and Administrator Anne Melissa Miligram of the Drug Enforcement Administration. In the letter it was noted that in just twelve years from 2010 to 2022, the death toll from fentanyl rose from 21,000 deaths to 81,800 deaths. Further, the Drug Enforcement Administration (DEA) identified that the leading producer of fentanyl precursors, the chemical substances used in the illegal manufacture of drugs, was China.
In May 2023, investigations were conducted into 90 China-based companies that supply fentanyl precursors and it was found that 90% of those companies accepted cryptocurrency as payment. Additionally it was discovered that crypto wallets used by those companies had received $30 million in crypto payments that year. To tackle these growing issues the DEA, the DOJ, and the Department of Treasury have been working diligently to halt said illicit activity.
As the US continues to ramp up its efforts to combat drug crime and crypto crime, it’s important to recognize that the best way to ensure your company is protected from scams and fraudulent activity is by deploying security methods like our zero-knowledge KYC protocol solution. The ValidEntry Verification service allows for the enhancement of individual user privacy while ensuring the security and integrity of the decentralized ecosystem. With an adequate level of KYC compliance, your company can protect itself from heavy security crackdowns brought forth by these and future regulations.
