The US Department of the Treasury, in coordination with the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), has sanctioned the China-based chemical company Guangzhou Tengyue Chemical Co., Ltd. (Guangzhou Tengyue) and two of its associates for synthetic opioid trafficking. This action is part of a joint effort to combat the trafficking of synthetic drugs and dangerous analgesic chemicals often used as cutting agents.
Guangzhou Tengyue was found to be involved in dealing nitazenes, synthetic substances with opioid-like effects that can cause respiratory failure. Additionally, the company advertised the sale of xylazine, a veterinary sedative used as a cutting agent that poses significant risks as it does not respond to standard overdose reversal treatments like Narcan. Despite these dangers, Guangzhou Tengyue actively marketed these substances and assured buyers of successful clearance through US customs.
A crypto address belonging to Huang Xiaojun, a Chinese national associated with Guangzhou Tengyue, was identified in an attempt to sell controlled substances to a US buyer in 2023. This address received payments totaling $1.26 million between January 2021 and January 2025, indicating significant financial activity related to illicit drug trafficking operations.
By targeting specific cryptocurrency addresses, the US government, through the Office of Foreign Assets Control (OFAC), aims to disrupt the financial infrastructure supporting international drug trafficking, emphasizing the role of cryptocurrency payment channels in enabling such illicit activities. This strategic approach provides valuable operational intelligence to cryptocurrency businesses, assisting in the identification and prevention of transactions associated with drug trafficking networks.
As part of our commitment to combatting synthetic opioid trafficking, we have flagged the identified Bitcoin address in our product suite for ongoing monitoring, with a focus on detecting additional addresses and entities linked to similar illicit operations.
Reference from News: OFAC Sanctions Chinese Chemical Company and Bitcoin Address