US Sen. Elizabeth Warren, a Massachusetts Democrat and well-known crypto critic, has called out cryptocurrency’s role in fentanyl drug transactions during a recent congressional hearing. She emphasized her Digital Asset Anti-Money Laundering Act, which aims to close loopholes in anti-money laundering rules while cutting off drug suppliers and cartels harnessing crypto to fuel their illicit businesses.
During the Senate Banking Committee hearing, Warren highlighted the alarming statistics of synthetic opioids, with fentanyl being the most common drug involved in overdose deaths. According to the US Centers for Disease Control and Prevention, over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The primary source countries for fentanyl are China and Mexico, as stated by the US Drug Enforcement Administration.
When questioned by Warren, Elizabeth Rosenberg, the Treasury Department’s Assistant Secretary for Terrorist Financing and Financial Crimes, confirmed that Chinese companies have used cryptocurrency for illegal drug transactions. This issue raises mixed opinions, as cryptocurrency enthusiasts often tout the decentralized nature of digital assets and their potential to democratize financial transactions, while others, like Warren, warn of their potential to facilitate illegal activities.
Furthermore, Warren cited figures from research firm Elliptic, revealing that 90 Chinese suppliers exchanged enough precursor drugs for crypto to produce $54 billion worth of fentanyl pills. This alarming amount equates to having enough fentanyl to kill nearly 9 billion people, all paid for by cryptocurrency. While crypto has the potential to transform global finance, regulations must be put in place to safeguard its use.
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Source: Cryptonews
