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The U.S. Treasury Department has taken action against several Chinese crypto wallets, which have been linked to illegal drug dealers. The Treasury’s Office of Foreign Assets Control (OFAC) on Tuesday imposed sanctions on three entities and one individual that have allegedly been involved in digital currency activities to facilitate the movement of funds for illegal drug transactions.
The entities identified by the Treasury are exchanges LBank, Bridge Suicide, and Bridge Money, and Chinese national Zhou Erway. According to the agency, these entities and their associated companies have been responsible for providing funding, integrating digital payments technology, and facilitating financial support for drug transactions across the world.
The department said that the activities of the sanctioned entities enabled over $40 million in drug proceeds to be processed.
“OFAC’s sanctions role is to ensure that those facilitating activities related to the illegal drug trade, such as digital currency, are held to account, and that drug traffickers and other illicit actors cannot too easily hide behind the veil of anonymous cryptocurrencies to engage in their criminal activities,” said Andrea Gacki, Director of OFAC.
The announcement made on Tuesday is part of the Treasury’s broader efforts to target illicit activities related to the cryptocurrency sector. According to the announcement, the department has taken action against companies and individuals involved in money laundering, terrorist financing, and other illegal activities. OFAC advised financial institutions to be vigilant in order to identify and report any suspicious activities related to the entities and individuals under sanction.