Senator Elizabeth Warren has called on US drug enforcement agencies for an update on their actions against the use of cryptocurrencies in the illegal fentanyl trade.
In a letter dated May 29, Warren and Senator Bill Cassidy requested information from the heads of the Office of National Drug Control Policy (ONDCP) and the Drug Enforcement Administration (DEA) on how the Biden Administration is addressing the exploitation of crypto by drug traffickers to enhance their operations and launder profits.
The senators emphasized the increasing role of digital currencies in the fentanyl market, noting that a large portion of these drugs ends up in the United States.
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A May 2023 investigation was cited by the senators, which found that around 81 Chinese companies providing fentanyl precursors received nearly $30 million in crypto. They noted:
<This amount is> enough to purchase the necessary precursors to produce a staggering $54 billion worth of fentanyl pills.
The Senators asked for the agencies to respond by June 14.
Warren has previously been criticized for citing inaccurate data in her anti-crypto arguments. For instance, she referenced an October 2023 Wall Street Journal article that overstated Hamas’s use of crypto to fund terrorism related to the Israel-Palestine war. Despite the WSJ later correcting the error, Warren did not publicly address the misinformation.
The Digital Asset Anti-Money Laundering Act that Warren has proposed has also faced criticism for being poorly aligned with the complexities of crypto, potentially driving innovation and investors away from the US.
Nonetheless, the responses from drug enforcement agencies to Warren and Cassidy’s inquiries will be crucial in shaping regulations and enforcement strategies related to the use of crypto in illegal activities.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
