Sens. Elizabeth Warren (D-Mass.) and Bill Cassidy (R-La.) are reevaluating the efforts of President Joe Biden’s administration to combat fentanyl trafficking in the United States, particularly through online sales using cryptocurrency.
“Cryptocurrency has played an increasingly prominent role in the global fentanyl trade over the past decade, both in terms of facilitating the manufacturing and trafficking of fentanyl and in laundering drug cartels’ criminal proceeds, and has been recognized as a threat by administrations of both parties,” the two senators wrote.
The White House Office of National Drug Control Policy under President Donald Trump wrote, in a February 2020 strategy assessment, that “the combination of low production cost, the anonymity of the dark web and cryptocurrencies, and drugs with higher potency than their plant-based counterparts creates a favorable risk-reward structure that drug traffickers are now embracing to an even greater degree than ever before.” Separately, the Biden administration announced new anti-money laundering enforcement efforts in September 2022, intended to counter cryptocurrency markets that “have facilitated the rise of ransomware cybercriminals; narcotics sales and money laundering for drug trafficking organizations; and the funding of activities of rogue regimes.”
While some cryptocurrency transactions are cataloged using blockchain technology, Ms. Warren and Mr. Cassidy said cryptocurrency exchanges, and in particular so-called “decentralized” crypto exchanges without a singular administrator, offer an attractive venue for illicit narcotics transactions because they can be nearly instantaneous, conducted across borders, and done using assumed identities.
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The bipartisan duo commended the Biden administration for taking action to combat narcotics trafficking, including a series of indictments in October against eight China-based chemical companies accused of illegally distributing chemical precursors for fentanyl and other narcotics. A U.S. Department of Justice press statement announcing the indictments alleged several of the entities involved operated cryptocurrency wallets to facilitate these alleged illicit transactions.
“While these developments are welcome, we seek additional information about the steps your offices are taking to disrupt illicit drug actors’ use of crypto,” Ms. Warren and Mr. Cassidy wrote on Wednesday.
The two senators requested the ONDCP and the DEA to evaluate cryptocurrency’s ongoing role in illegal narcotics transactions, outline their efforts to counter cryptocurrency’s involvement in such transactions, and detail their challenges and limitations. They requested a response by June 14.
NTD News contacted the White House and the DEA for comments on this letter and their specific efforts to address the role cryptocurrency might play in illegal narcotics transactions. However, neither office responded by press time.
As the U.S. Department of Justice announced the fentanyl-trafficking indictments against the eight China-based chemical companies in October, Ms. Milgram noted that “nearly all fentanyl precursors come from China.”
The Biden administration initiated a U.S.-China Bilateral Counternarcotics Working Group in January to enhance cooperation between the two countries in combating the flow of Chinese fentanyl and fentanyl precursors into the United States.
Can you please rewrite this for me?
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