How Blockhchain is Helping to Unravel International Fentanyl Trafficking

  beincrypto.com 21 March 2025 01:50, UTC

Blockchain technology is becoming a crucial tool for law enforcement agencies to track and prevent international smuggling activities, including fentanyl.

Fentanyl is an extremely dangerous synthetic opioid. Thanks to its transparency, blockchain can track the activities of criminal organizations involved in fentanyl trafficking, from chemical suppliers in China to drug cartels in Mexico and North America.

Blockchain Becomes the “Achilles’ Heel” of Fentanyl Crimes

As we know, blockchain operates as an immutable digital ledger that records all transactions transparently and permanently. The technology helps increase trust and efficiency through transparent transactions and faster disbursement of funds for charitable activities.

This has created a significant weakness for fentanyl smuggling organizations. Such crime units often use cryptocurrency to conduct cross-border transactions quickly and anonymously.

According to Chainalysis, this transparency of blockchain allows investigators to trace transactions related to fentanyl. They track the flow from chemical suppliers in China to criminal organizations such as Mexican drug cartels, including the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG).

Tracking Cartel Money Laundering On-Chain. Source: Chainalysis

Authorities in the Eastern District of Wisconsin, USA, seized over $5.5 million in crypto linked to money laundering networks associated with Mexican drug cartels and Chinese chemical suppliers.

Chainalysis utilized its analytics tools to track the flow of funds from centralized exchange accounts and suspicious crypto addresses. They found that fentanyl traffickers use cryptocurrency, particularly Bitcoin (BTC) and stablecoins, to purchase precursor chemicals from Chinese suppliers.

These materials are then sent to organizations such as Mexican cartels for the production and distribution of fentanyl in the US. Darknet markets (DNMs) also play a crucial role in this network.

Darknet Markets Selling Fentanyl Using Crypto. Source: Elliptic

According to the 2025 Chainalysis Crypto Crime Report, Abacus Market is one of the largest darknet markets serving Western customers. It received $43.3 million in on-chain transactions in 2024, becoming the highest-earning market on the darkweb.

Some darknet markets ban fentanyl sales in their terms of service. However, many vendors bypass restrictions by selling fentanyl-laced substances or derivatives such as nitazenes.

Source