The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has sanctioned crypto wallets allegedly connected to individuals and companies involved in the production of fentanyl.
In an Oct. 3 notice, the U.S. Justice Department announced indictments against several China-based chemical manufacturers as well as many of their employees, who allegedly used crypto transactions as part of an illegal fentanyl precursor distribution scheme. According to the U.S. authorities, the companies “tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds”, identifying at least 3 individuals who held crypto wallets for payments.
OFAC added wallets for Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Tether (USDT) and Tron (TRX) connected to Chinese nationals and Valerian Labs to its list of Specially Designated Nationals along with companies including Hanhong Pharmaceutical Technology and Hebei Crovell Biotech. According to Deputy Treasury Secretary Wally Adeyemo, the enforcement action was aimed at disrupting an illicit drug network.
‘[W]e have identified and blocked over a dozen virtual currency wallets associated with these actors,” said Adeyemo. “The blocked wallets, which received millions of USD funds over hundreds of deposits, illustrate the scope and scale of the operation targeted today.”
Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and Employeeshttps://t.co/f37okHaa6z
Many lawmakers have urged action on cracking down on the distribution of fentanyl in the United States, where the drug was estimated to be responsible for more than 67,000 deaths in 2021. Massachusetts Sen. Elizabeth Warren — an outspoken critic of digital assets — called out potential links between crypto payments and drug trafficking in a May hearing.
The first week in October also marked the 10th year in prison for Ross Ulbricht, the founder of the online marketplace Silk Road. Many criticized the platform for facilitating the drug trade by allowing payments with digital assets, but Ulbricht still has his supporters in the crypto space.
The license came eight months after the regulator granted the company in-principle approval, and a few weeks after Bybit secured a non-operational license for Dubai.
Sir Keir Starmer has denied any ministers were involved in the collapse of the trial of alleged Chinese spies.
Christopher Cash, 30, a former parliamentary researcher, and teacher Christopher Berry, 33, were accused of spying for China, but weeks before their trial was due to begin, it was dropped.
Berry, of Witney, Oxfordshire, and Cash, of Whitechapel, east London denied the allegations.
Sir Keir, his ministers and national security adviser Jonathan Powell have faced accusations they were involved in the trial being dropped.
The prime minister has maintained that because the last Conservative government had not designated China as a threat to national security, his government could not provide evidence to that effect, which the director of public prosecutions Stephen Parkinson said was required to meet the threshold for prosecution.
Mr Parkinson had blamed ministers for failing to provide the crucial evidence needed to proceed.
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During a trade visit to India, the prime minister was asked whether any minister, or Mr Powell, were involved in the decision not to provide the Crown Prosecution Service (CPS) with evidence that, at the time of the alleged offences, China represented a threat to national security.
He replied: “I can be absolutely clear no ministers were involved in any of the decisions since this government’s been in in relation to the evidence that’s put before the court on this issue.”
Sir Keir reiterated his line that the case could only rely on evidence from the period the pair were accused of spying, from 2021 to 2023, when the Conservatives were in government.
He said: “The evidence in this case was drawn up at the time and reflected the position as it was at the time,” the PM said in India.
“And that has remained the situation from start to finish.
“That is inevitably the case because in the United Kingdom, you can only try people on the basis of the situation as it was at the time.
“You can’t try people on the basis of the situation, as it now is or might be in the future, and therefore, the only evidence that a court would ever admit on this would be evidence of what the situation was at the time.
“It’s not a party political point. It’s a matter of law.”
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Is China an enemy to the UK?
Sir Keir’s assertion has been called into question by former top civil servants and legal experts.
Mark Elliott, professor of public law at the University of Cambridge, told Sky News there is no legal requirement for a country to be declared an enemy for someone to be tried for breaching the Official Secrets Act.
He said the current government was “cherry picking” what the previous government had said about China to claim they did not regard them as a threat to national security.
However, there are several examples of the Tory government saying China was a national security threat during the time Berry and Cash were accused of spying.