OFAC Targets Chinese Firm and Bitcoin Address in Opioid Trafficking Crackdown
Rebeca Moen Sep 03, 2025 18:36
The U.S. Treasury's OFAC sanctions Guangzhou Tengyue Chemical Co. and a Bitcoin address linked to opioid trafficking as part of a joint effort with the DEA and FBI.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), in collaboration with the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), has sanctioned Guangzhou Tengyue Chemical Co., Ltd., a China-based chemical company, along with two individuals. This move targets synthetic opioid trafficking operations, as reported by Chainalysis.
Sanctions Target Illicit Operations
The sanctions include a Bitcoin address linked to Huang Xiaojun, a representative of Guangzhou Tengyue, who coordinated illegal drug shipments to the United States. OFAC's action is part of a broader initiative to curb the trafficking of synthetic drugs and cutting agents, which have been a growing concern for U.S. authorities.
Details of the Designation
According to OFAC, the designated entity dealt in nitazenes, synthetic substances known for their opioid-like effects and potential for causing respiratory failure. Guangzhou Tengyue also marketed xylazine, a veterinary sedative used as a cutting agent, notorious for its resistance to overdose reversal treatments like Narcan. Despite these dangers, the company assured customers of successful delivery through U.S. customs.
Cryptocurrency Connection
The sanctioned Bitcoin address, associated with Huang Xiaojun, was involved in transactions relating to the attempted sale of controlled substances to a U.S. buyer in 2023. The address reportedly received $1.26 million from January 2021 to January 2025, with payments originating from crypto ATMs and darknet market vendors.
Strategic Implications
This enforcement action highlights the U.S. government's commitment to dismantling the financial networks that support international drug trafficking. By designating specific cryptocurrency addresses, OFAC provides crucial intelligence to cryptocurrency businesses, aiding them in identifying and preventing illicit transactions linked to drug trafficking.
This development underscores the complexity of combating synthetic opioid trafficking, which increasingly involves digital currencies. The collaboration between OFAC, DEA, and FBI demonstrates a concerted effort to address the evolving challenges posed by the use of cryptocurrencies in illegal drug trade operations.
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