U.S. Senators Elizabeth Warren and Bill Cassidy are calling on the Biden administration to provide updates on their efforts to combat the use of cryptocurrency in international fentanyl trafficking. Warren, a prominent cryptocurrency critic, co-signed a letter with Cassidy, claiming that cryptocurrency has played an increasingly significant role in the global fentanyl trade over the past decade.
The letter highlights that both the Biden administration and former President Donald Trump's government have acknowledged the role of crypto in facilitating illegal drug trade or have taken steps to curb its use. Warren and Cassidy cite two instances where these administrations have addressed the issue.
The senators' letter also focuses on the alleged use of cryptocurrency in helping fentanyl precursor chemical traders evade law enforcement detection. They argue that decentralized crypto exchange platforms enable Chinese-supplied fentanyl precursors to be used in drugs trafficked to the U.S.
According to the letter, a May 2023 investigation into China-based companies supplying fentanyl precursors found that 90% of them accepted cryptocurrency payments. These companies collectively received nearly $30 million in crypto payments, which could purchase enough precursors to produce $54 billion worth of fentanyl pills.
The letter also highlights a surge in crypto transactions with these China-based companies, growing by 450% year-on-year, largely due to their undetectability.
While acknowledging previous efforts by the Biden administration to combat this issue, Warren and Cassidy request the government's current assessment of crypto's role in the illegal drug trade. They also seek information on the administration's actions to address crypto's involvement in fentanyl trafficking since December 2021.
Warren and Cassidy believe that the Biden administration should also provide information on any challenges or statutory limits they face in their attempts to tackle the use of cryptocurrency in illegal drug transactions. The senators expect answers to their inquiries by June 14, 2024.
What are your opinions on Warren and Cassidy's letter? Share your thoughts in the comments section below.