US Agency Sanctions Chinese Drug Traffickers Using Bitcoin To Launder Proceeds

US Agency sanctions Chinese drug traffickers using Bitcoin to launder proceeds. The U.S. Office of Foreign Assets Control (OFAC), has sanctioned four Chinese nationals for reportedly using cryptocurrency to launder proceeds from illicit drug transactions.

According to a press release on Friday, the OFAC said Songyan Ji, Longbao Zhang, Guifeng Cheng and Guangfu Zheng, as well as Global Biotechnology Inc., provided support to the Zheng Drug Trafficking Organization under the Foreign Narcotics Kingpin Act.

“The Zheng DTO laundered its drug proceeds in part by using digital currency such as bitcoin, transmitted drug proceeds into and out of bank accounts in China and Hong Kong, and bypassed currency restrictions and reporting requirements,” the release said.

Zheng DTO was also listed in a previous sanctions effort by OFAC, when the division added Xiaobing Yan, Fujing Zheng and Guanghua Zheng to its Specially Designated Nationals (SDN) list as narcotics traffickers last August.

No bitcoin or other crypto addresses were added to the sanctions list, unlike last August. The release also did not indicate the magnitude of the alleged laundering.

The decision of OFAC means that it seeks to seize all properties belonging to U.S citizens. U.S. companies are also forbidden from communicating with or transacting with the four designates.

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