TRM Labs, a blockchain intelligence firm, says that China’s precursor manufacturers will receive over 26 million dollars in cryptocurrency in 2023. Around 60% of the payments are made in Bitcoin.
It appears that cryptocurrency is becoming more popular as a method of payment. Chinese According to a report by WalletHub, the number of cryptocurrency deposits into wallets associated with these entities increased six-fold between 2022 and 2023. TRM LabsThe firm is backed by JPMorgan Chase as well as Visa, Citi and PayPal.
TRM Labs analysts revealed in a research report that was shared with Crypto.news recently, deposits to addresses associated with Chinese drug manufacturers more than doubled during the first four month of 2024 as compared to 2023. Chinese precursor networks in 2023 received more than $26 million from 11 manufacturers. “over 70% of all crypto-denominated sales of drug precursors.”
“Crypto funds sent to Chinese precursor manufacturers primarily come from unhosted wallets, cryptocurrency exchanges, and payment services; the manufacturers’ wallets are most commonly hosted at exchanges.”
TRM Labs
Around 60% of cryptocurrency payments made to Chinese pre-cursor manufacturers took place on the Bitcoin The blockchain is followed by 30% of the TRON About 6% blockchain on the Ethereum Data shows that the blockchain has a lot of potential. Chinese manufacturers appear comfortable accepting payment in fiat currencies through PayPal, MoneyGram or Western Union.
TRM labs says that the Chinese are shipping their drug precursors to Canada, Australia and Germany. There are advertisements for the mephedrone pre-cursors that target Russia and its neighboring nations.
A U.S. Congress committee in April reported that China subventions illicit fentanyl production, which is fueling the U.S. Opioid Crisis. The committee reportedly China has been found to offer value-added tax exemptions on narcotics such as fentanyl and its analogs.
Elliptic has also joined the ranks of blockchain intelligence firms. earlier notedfentanyl, which has a 50-fold higher potency than heroin and a lower production price, is preferred by the drug cartels. This is why it’s the most common cause of death among Americans between 18-45.
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Source: crypto.news