US Treasury issues warning about four cryptocurrencies
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has issued a new advisory warning U.S. financial companies about the increasing use of cryptocurrencies in illicit drug trafficking.
The advisory, which updates advice previously published in 2019, claims that Bitcoin (BTC), Ethereum (ETH), Monero (XMR), and Tether (USDT) are involved in this illicit market.
According to FinCEN, criminal organizations in Mexico are increasingly using these digital assets to purchase raw materials needed to produce powerful drugs. The cartel reportedly purchases precursor chemicals and production equipment from China-based suppliers and pays for these transactions with the aforementioned cryptocurrency.
Related News: What’s Happening to Dogecoin (DOGE)? An incident not seen for a year
These payments typically arrive in Chinese vendor wallets hosted by various cryptocurrency companies, sometimes through secondary remittance devices. Criminal networks involved in drug production have become a major concern for U.S. authorities.
This recommendation follows several enforcement and criminal cases brought by U.S. authorities against entities engaged in such activities. Last October, the U.S. Department of Justice indicted eight companies linked to China on charges of producing and distributing illegal drugs and selling precursor chemicals.
The updated recommendations are a stark reminder of the anonymous nature of cryptocurrencies and the challenges posed by their potential use for illicit activities.
*This article is not investment advice.
Continue reading: US Treasury Issues Warning About 4 Cryptocurrencies
Patent.
