{"id":112352,"date":"2019-08-22T18:25:35","date_gmt":"2019-08-23T01:25:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=112352"},"modified":"2019-11-07T02:51:49","modified_gmt":"2019-11-07T02:51:49","slug":"drug-lords-bitcoin-litecoin-blacklisted-us-treasury","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/drug-lords-bitcoin-litecoin-blacklisted-us-treasury\/","title":{"rendered":"Three drug lords have their Bitcoin and Litecoin addresses blacklisted by US Treasury"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">OFAC and FinCEN <\/span><a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sm756\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> a coordinated effort to sanction three Chinese nationals for an international drug trafficking operation with profits laundered via <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a> and <a href=\"http:\/\/cryptoslate.com\/coins\/litecoin\">Litecoin<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The culprits, <\/span><a href=\"https:\/\/www.treasury.gov\/resource-center\/sanctions\/Programs\/Documents\/20190821_zheng_chart.pdf\"><span style=\"font-weight: 400;\">identified<\/span><\/a><span style=\"font-weight: 400;\"> as Xiaobing Yan, Fujing Zheng, and Guanghua Zheng, were accused of manufacturing and distributing lethal narcotics. These drugs contributed directly to the opioid crisis in the United States, said Sigal Mandelker, under secretary for the Terrorism and Financial Intelligence division.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Financial Crimes Enforcement Network (FinCEN) ordered a freeze on any property belonging to the criminal organization as well as blacklisting 12 different\u00a0<\/span><a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\"><span style=\"font-weight: 400;\">Bitcoin<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"http:\/\/cryptoslate.com\/coins\/litecoin\"><span style=\"font-weight: 400;\">Litecoin<\/span><\/a><span style=\"font-weight: 400;\"> addresses. The traffickers were also\u00a0<\/span><a href=\"https:\/\/www.treasury.gov\/resource-center\/sanctions\/OFAC-Enforcement\/Pages\/20190821.aspx\"><span style=\"font-weight: 400;\">added<\/span><\/a><span style=\"font-weight: 400;\"> to the Specially Designated Nationals (SDN) list per the Foreign Narcotics Kingpin Designation Act, giving the U.S. Treasury broad powers to sanction the individuals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As part of the sanctions, an advisory alert was issued to financial institutions around the globe to help detect and report criminal activity in the future. Here, the United States and the Department of Treasury can leverage their broad powers over the global financial system.<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cWe are making the financial sector aware of tactics and typologies behind illicit schemes to launder the proceeds of these fatal drug sales, including transactions using digital currency and foreign bank accounts,\u201d said FinCEN director Kenneth Blanco.\u00a0<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">\u2026<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201cFinancial institutions must be on alert to red flags and other indicators of the complex schemes [drug] traffickers are employing so that financial institutions can report and share relevant information with law enforcement, and ultimately help save lives,\u201d he continued.<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">This is not the first time the Office of Foreign Assets Controls (OFAC) added cryptocurrency addresses to its sanctions list. The agency took action against two Iran-based individuals, who <\/span><a href=\"https:\/\/cryptoslate.com\/bitcoin-addresses-linked-to-two-criminals-by-u-s-department-of-treasury-exchanges-face-potential-secondary-sanctions\/\"><span style=\"font-weight: 400;\">helped<\/span><\/a><span style=\"font-weight: 400;\"> exchange <\/span><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\"><span style=\"font-weight: 400;\">Bitcoin<\/span><\/a><span style=\"font-weight: 400;\"> ransom payments into Iranian rial, back in November 2018. The Office of Foreign Assets Control blacklisted two Bitcoin addresses that had processed over 7,000 transactions, worth millions of dollars.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Governments will implement greater controls on BTC as concern around cryptocurrency\u2019s use for illicit activity intensifies. As exemplified by Treasury Secretary Steven Mnuchin, the department will police Bitcoin and other coins with \u201cvery, very strong\u201d regulations. As summarized in an interview on <\/span><a href=\"https:\/\/www.cnbc.com\/squawk-box-us\/\"><span style=\"font-weight: 400;\">CNBC\u2019s \u201cSquawk Box<\/span><\/a><span style=\"font-weight: 400;\">, Mnuchin asserted:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe\u2019re going to make sure that Bitcoin does not become the equivalent of Swiss-numbered bank accounts, which were obviously a risk to the financial system.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OFAC and FinCEN announced a coordinated effort to sanction three Chinese nationals for an international drug trafficking operation with profits laundered via Bitcoin and Litecoin. The culprits, identified as Xiaobing Yan, Fujing Zheng, and Guanghua Zheng, were accused of manufacturing and distributing lethal narcotics. These drugs contributed directly to the opioid crisis in the United [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Three drug lords have their Bitcoin and Litecoin addresses blacklisted by US Treasury<\/title>\n<meta name=\"description\" content=\"OFAC and FinCEN announced a coordinated effort to sanction three Chinese nationals for an international drug trafficking operation with profits laundered via Bitcoin and Litecoin.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/drug-lords-bitcoin-litecoin-blacklisted-us-treasury\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Three drug lords have their Bitcoin and Litecoin addresses blacklisted by US Treasury\" \/>\n<meta property=\"og:description\" content=\"OFAC and FinCEN announced a coordinated effort to sanction three Chinese nationals for an international drug trafficking operation with profits laundered via Bitcoin and Litecoin.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/drug-lords-bitcoin-litecoin-blacklisted-us-treasury\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-23T01:25:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-11-07T02:51:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/11\/cryptoslate-cover.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Three drug lords have their Bitcoin and Litecoin addresses blacklisted by US Treasury\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/drug-lords-bitcoin-litecoin-blacklisted-us-treasury\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/drug-lords-bitcoin-litecoin-blacklisted-us-treasury\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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