Chainalysis: $250 Million in Cryptocurrency Received by Precursor Suppliers Since 2015

The analytics firm Chainalysis identified thousands of wallets linked to illegal producers of drug ingredients. From July 2015 to February 2024, these wallets processed at least $250 million in various cryptocurrencies.

Researchers found that approximately $100 million of this amount went to pharmaceutical factories in China.

They believe the recipients of these transfers are shops dealing in chemical precursors or enterprises producing key ingredients for illegal drugs such as fentanyl and heroin.

The tracked wallets include both exchange addresses and several unique network services and hardware devices.

According to previous Chainalysis estimates for 2023, from January 2018 to April 2023, chemical precursor shops received about $38 million in cryptocurrencies. In that study, analysts worked with a smaller data set.

Earlier, TRM Labs reported that during 2023, the inflow of cryptocurrencies to more than a hundred addresses it tracked, associated with darknet fentanyl suppliers, was slowing.

Experts attributed this to sanctions against a network of Chinese fentanyl producers and the Mexico-based Sinaloa cartel, as well as a major seizure of the drug sent to the US from China in October.