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White House Advisory Says Cryptocurrencies Used for Fentanyl Purchases
The White House advisories state "convertible virtual currencies," particularly bitcoin, bitcoin cash, ethereum, and monero, are actively being used on dark net markets.
Updated Dec 12, 2022, 1:43 p.m. Published Aug 22, 2019, 12:30 a.m.
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The White House issued two advisories on drug purchases in the U.S. Wednesday, using the communications to make specific references to the role of cryptocurrencies in such transactions.
The advisories, addressed to both financial institutionshttps://www.whitehouse.gov/wp-content/uploads/2019/08/Fentanyl-Advisory-Money-Tab-D.pdf and digital payment platformshttps://www.whitehouse.gov/wp-content/uploads/2019/08/Fentanyl-Advisory-Marketing-Tab-B.pdf, state that "convertible virtual currencies," particularly bitcoin, bitcoin cash, ethereum and monero, can be and have been used for illicit substance purchases on the clear, deep, and dark nets.
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The advisory defines convertible virtual currencies as monies that are easily liquidated into stable fiat currencies such as the dollar.
Specifically noted is the drug fentanyl, a Schedule II controlled substance whose illicit cousin enters the U.S. through Mexico or China, per the advisories.
According to the Drug Enforcement Agency, fentanyl is 80 to 100 times stronger than morphine.
"An analysis of sensitive financial data indicates that domestic illicit drug manufacturers, dealers, and consumers use online payment platforms or [convertible virtual currency] to purchase precursor chemicals or completely synthesized narcotics primarily sourced from China," the advisory states.
The White House issued the financial advisory with other government agencies as a part of a broader cooperative effort "to end the fentanyl epidemic." As such, methods of payment were studied, including virtual currencies.
The July 2017 takedown of dark market AlphaBay by U.S. officials is given as an example of past interaction between virtual currencies and illicit substances.
Included in the report is authority methods of tracking and discovery payments for illicit substances using CVC's such as wallet and IP addresses along with transaction hashes.
Earlier today, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) blacklisted three Chinese nationals for money laundering and drug smuggling laws.
Drugs image via CoinDesk archives
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
知っておくべきこと:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
知っておくべきこと:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
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