Cryptocurrency Ties to Human Trafficking and Fentanyl Production Uncovered by Chainalysis

A recent study by Chainalysis has shed light on the intersection of cryptocurrency and human trafficking. The report reveals that payments to suspected suppliers of precursor chemicals used in fentanyl production began to decline in mid-2023, months before overdose deaths decreased.

This pattern suggests that blockchain data may provide an early warning system for disruptions in the illicit drug supply chain. According to Chainalysis, tracking cryptocurrency transactions linked to vendors of chemical precursors could give law enforcement and policymakers a three-to-six-month lead time on changes in synthetic opioid supply.