Home Editor's Pick US Treasury Imposes Sanctions on Several Chinese Crypto Wallets Linked to Illegal Drug Dealers

US Treasury Imposes Sanctions on Several Chinese Crypto Wallets Linked to Illegal Drug Dealers


The US Treasury Department announced on Wednesday that it has imposed sanctions on seven Chinese individuals and two Chinese-based crypto wallets, alleging that they are linked to drug traffickers involved in addiction and large-scale illegal drug trade.

The Office of Foreign Assets Control (OFAC) named the seven people it sanctioned as part of its Kingpin Actions. According to the statement, these seven individuals and two crypto wallets share a common link – illicit drug trafficking activities that use cryptocurrencies to facilitate payments.

The first wallet, Wu Blockchain Technology, is owned by Wu Changjiang, one of the seven sanctioned individuals, while the second, Shenzhen Xinghui Investment Co., Ltd., is managed by two other persons identified in the list.

OFAC also alleged that the two wallets have been used to transfer significant amounts of money in and out of the country for an undisclosed purpose, which could signify involvement in illicit financial activities. Additionally, the statement added that both wallets were connected to significant drug trafficking activities related to the production and sale of illicit drugs such as methamphetamine.

The sanctioned individuals and companies affiliated with them have been identified as key operators in the transnational drug trafficking networks, and thus OFAC has sanctioned them as Specially Designated Narcotics Traffickers (SDNTs).

The sanctioned companies and individuals are now subject to restrictions by the US government and their assets within US jurisdiction have been frozen. Furthermore, all US-based entities are also prohibited from conducting business with these parties.

The Treasury statement concluded by reiterating the US government’s commitment to aggressively targeting and sanctioning those involved in the trafficking of drugs and protect American citizens from their destructive activities.

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