Chinese Fentanyl Exporters Linked to Cryptocurrency Fraud Scheme in Japan

A Chinese organization involved in exporting fentanyl precursors to the U.S. was also linked to a cryptocurrency fraud scheme in Japan, according to local reports. The group issued a token called zksync.jp that used the prestige of Japan's internet domain and the similarity with an existing payments system to lure unsuspecting users into investing. This scam resulted in losses amounting to hundreds of millions of yen.

The investigation found over 120 transfers between Hubei Amarvel Biotech, a Chinese chemical manufacturer linked to the group, and other illicit drug market groups. The DEA is now targeting Japan's transit markets as part of its efforts to combat international narcotics trafficking.