White House Advisory Says Cryptocurrencies Used for Fentanyl Purchases

The White House advisories state "convertible virtual currencies," particularly bitcoin, bitcoin cash, ethereum, and monero, are actively being used on dark net markets.

AccessTimeIconAug 22, 2019 at 12:30 a.m. UTC
Updated Aug 18, 2021 at 12:39 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The White House issued two advisories on drug purchases in the U.S. Wednesday, using the communications to make specific references to the role of cryptocurrencies in such transactions.

The advisories, addressed to both financial institutions and digital payment platforms, state that "convertible virtual currencies," particularly bitcoin, bitcoin cash, ethereum and monero, can be and have been used for illicit substance purchases on the clear, deep, and dark nets.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • The advisory defines convertible virtual currencies as monies that are easily liquidated into stable fiat currencies such as the dollar.

    Specifically noted is the drug fentanyl, a Schedule II controlled substance whose illicit cousin enters the U.S. through Mexico or China, per the advisories.

    According to the Drug Enforcement Agency, fentanyl is 80 to 100 times stronger than morphine.

    "An analysis of sensitive financial data indicates that domestic illicit drug manufacturers, dealers, and consumers use online payment platforms or [convertible virtual currency] to purchase precursor chemicals or completely synthesized narcotics primarily sourced from China," the advisory states.

    The White House issued the financial advisory with other government agencies as a part of a broader cooperative effort "to end the fentanyl epidemic." As such, methods of payment were studied, including virtual currencies.

    The July 2017 takedown of dark market AlphaBay by U.S. officials is given as an example of past interaction between virtual currencies and illicit substances.

    Included in the report is authority methods of tracking and discovery payments for illicit substances using CVC's such as wallet and IP addresses along with transaction hashes.

    Earlier today, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) blacklisted three Chinese nationals for money laundering and drug smuggling laws.

    Drugs image via CoinDesk archives

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about