Senator Elizabeth Warren Urges Legislators to Stop Chinese Fentanyl Traders from Using Crypto Payment 

On Wednesday, US Senator Elizabeth Warren issued a report during the Senate hearing outlining the various ways crypto has been used to support the operation of the Fentanyl trade. Referring to a report issued by the American research firm Elliptic, Senator Warren observed a complex relationship between crypto transactions and the Chinese fentanyl trades.

In her speech, Senator Warren requested the legislators to take immediate action to suspend the unlawful trade and mitigate the concern. She lamented that the fentanyl trade had affected the well-being of communities in the US and overseas.

Why is Crypto Used in Fentanyl Trade?

In her address, Senator Warren observed that in the Elliptic report, roughly 90 Chinese firms have engaged in fentanyl precursor supplies. She noted that the supply of fentanyl precursors had involved crypto payments.

After analyzing the Elliptic data, Warren observed that cryptos had been used to finance the fentanyl trades. She urged the legislator to take action to shut down the businesses engaging in fentanyl trades.

In 2019 the Chinese government implemented restrictive measures to minimize fentanyl trade in the region. The ban on fentanyl trade in China compelled businesses to ship their products from Mexico.

According to an Elliptic report, Chinese businesses have garnered over $27 million from fentanyl trades that involve crypto transactions. The Elliptic researcher noted that the crypto transaction in the fentanyl trade surged by 450% over time.

Based on the researcher’s estimates, approximately $27 million of precursors are used to produce fentanyl pills valued at $54 billion.A recent study reported that the number of fentanyl overdoses has resulted in the loss of lives of people between the ages of 18 to 45.

The increase in fentanyl quantity would lead to overdosing over 8.6 billion individuals, which could diminish the community’s quality of life. The Elliptic report indicated that some traffickers had used Bitcoin to settle for payment of fentanyl trades.

It was reported that using virtual assets to complete crypto payments has created mixed thoughts on using cryptos.

Factors Contributing to Fentanyl Trade in the US  

Following Senator Elizabeth Warren’s speech, the Senate agreed to take legal action against fentanyl trades. Also, the legislators demanded international cooperation to address using cryptos in unlawful business.

During the Senate hearing, it was observed that to combat the fentanyl trades that involve crypto payments, the legislators were required to redefine the crypto regulatory measures. This implies that the legislators must implement tougher crypto regulations on transactions involving major digital assets such as Bitcoin.

A report issued by Elizabeth Rosenberg, the US Treasury Department assistant secretary for terrorist financing, regretted that the precursor producers and manufacturers of illicit drugs had utilized crypto wallets to make Bitcoin payments. Rosenberg argued that the suitability of crypto payment in illicit drug manufacturing firms mirrors the Bitcoin transactions completed by financial criminals.

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