A recent operation by the Drug Enforcement Administration (DEA) in collaboration with the FBI has led to the seizure of a significant amount of cryptocurrency linked to the Sinaloa cartel.
Operation to Seize Cryptocurrency
The DEA seized $10 million in cryptocurrency in Miami, Florida, during a joint operation with the FBI. This seizure is part of extensive nationwide operations that have already led to the confiscation of 44 million fentanyl pills, around 65,000 pounds of methamphetamine, over 201,500 pounds of cocaine, and 4,500 pounds of fentanyl powder since the beginning of the year.
What is the Sinaloa Cartel?
The Sinaloa cartel is one of the most notorious drug trafficking organizations that uses cryptocurrency to facilitate money laundering and purchase fentanyl precursors. It is believed that the cartel employs Bitcoin and USDT to pay suppliers, particularly China-based vendors. According to Chainalysis, Chinese vendors received $26 million in cryptocurrency in 2023, reflecting a 600% increase compared to 2022.
Use of Cryptocurrency 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 utilized for money laundering, drug purchases, and sales. It is widely reported that the majority of payments made from illicit markets are conducted in various cryptocurrencies, including Bitcoin, Monero, and USDT. A dark web assessment report indicates that synthetic drugs and opioids account for 68% of goods on the darknet market.
Dismantling operations by the DEA and FBI demonstrate significant progress in combating drug cartels and their financing. The continued rise of cryptocurrency use among drug traffickers presents new challenges for law enforcement.
