Fentanyl Traffickers Linked to $Millions in Crypto Scam in Japan

A Chinese organization involved in exporting fentanyl precursors to the U.S. also perpetrated a massive cryptocurrency scam in Japan, using a token linked to a domain similar to a Japanese fast-payments service.

Nikkei's investigation found that the group issued a fraudulent token called zksync.jp, exploiting Japan's internet domain prestige and the similarity of this domain with an existing payments system.

The scam defrauded numerous victims out of hundreds of millions of yen, or millions of dollars. The group used a cover company in Japan linked to Hubei Amarvel Biotech, whose two executives were convicted in the U.S. last year for their ties with Chinese drug lords.

The investigation revealed over 120 cryptocurrency transfers between the organization and Wuhan Yuangcheng, a group whose leader has been designated by the U.S. Department of State as 'one of the most prolific suppliers of anabolic steroids in the world,' who also exported fentanyl precursors to the U.S.

The DEA targets Japan's transit markets, with the U.S. offering a reward of up to $5 million for information leading to the capture of Wuhan Yuangcheng's leader.