Most recently, the Drug Enforcement Administration has seized $10 million in crypto linked to the Sinaloa cartel. The operation was carried out with the help of the FBI.
During an operation in Miami, Florida, the DAE, with the joint efforts of the FBI, managed to seize a huge amount of cryptocurrencies linked to the cartel.
According to the Department of Justice, the seizure of digital assets is a follow-up to the extensive countrywide operations in which 44 million fentanyl pills, around 65,000 pounds of methamphetamine, over 201,500 pounds of cocaine, and 4,500 pounds of fentanyl powder, since January this year.
In DOJ’s immediate press release, Pamela Bondi, the General Attorney, said, “ Our DEA agents are doing historic work to keep our communities safe from deadly drugs like fentanyl and dismantle the cartels selling them,” adding, “ I want to remind all Americans to exercise extreme caution: a pill can kill.”
DEA’s Acting Administrator Robert Murphy argues that, “ DEA is hitting the cartels where it hurts—with arrests, with seizures, and with relentless pressure. From meth labs in California to fentanyl pills disguised as pharmaceuticals seized at our border, these operations are saving American lives every single day.”
Murphy added, “ We are not slowing down. We are dismantling these networks piece by piece—and we won’t stop until the last brick of their empire falls.”
What is the Sinaloa Cartel?
Sinaloa Cartel, one of the most prominent drug trafficking organizations, uses cryptocurrencies to facilitate its operations for money laundering and purchasing fentanyl precursors.
It is said the cartel uses Bitcoin and USDT to launder money and to pay suppliers, especially Chinese vendors supplying fentanyl. Chainalysis reported that Chinese vendors received $26 million in crypto in 2023, reflecting a clear 600% compared to that in 2022.
The cartel is among the labelled cartels as a global ‘terrorist’ by the United States government. It primarily deals in cocaine, heroin, methamphetamine, cannabis, MDMA, and fentanyl.
Usage of crypto on peak among drug traffickers
The usage of cryptocurrencies has surged among drug traffickers due to their pseudonymous nature and ease of cross-border payments. Digital assets are heavily used for money laundering, drug purchase, and sale.
It is widely said that, majority of payments made from illicit markets are done on different cryptocurrencies, including Bitcoin, Monero, and USDT, among others.
Drug traffickers buy and sell different illicit products over the crime-oriented markets using cryptocurrencies. A darkweb assessment report notes that synthesis drugs and opioids account for 68% of darknet market goods.
