White House Claims Cryptocurrencies are used to Purchase Illegal Drugs

White House has issued 2 memos to sternly warn the public that prohibited drugs such as fentanyl and other synthetic opioid are being purchased with crypto. The notices were sent to all financial institutions and digital payment companies to alert them of the development. And also to guide them to uncover such illicit transactions.

So, the White House document of crypto read thus:

“Recent investigation on sensitive financial documents have shown that local illegal drug dealers, producers, and consumers have adopted a new tactic of payment. Also, they now make use of online purchase platforms or CVC to buy chemicals or synthesized narcotics, which are mostly from China.’’ 

The Involvement of Crypto in Illicit Foreign drugs

According to the financial data, CVC is the acronym of Convertible Virtual Currencies” – especially Bitcoin, Etherum, Bitcoin Cash, and Monero. To further shed more light on their operations, the memo adds:

“People within the US look for website or platforms where they can buy these drugs online.’’ These external platforms will then ask them to pay through CVCs and other cryptocurrencies.”

Financial Institutions are Encouraged to Extract Useful Crypto Information

The memo went further to note that these illegal transactions leave traces of crypto information that can be used to track down these dealers. So, these details range from virtual wallet address, account data, useful transaction information, history. Moreover, any available log in information, IP addresses, and also information traced to a public profile or mobile devices.

Also, the secretary of the US treasury, Stephen Mnuchin, has revealed their imminent move to prevent Bitcoin from becoming “equal to some Swiss bank accounts.”

He also affirmed that he understands the fears of the president regarding the possible use of these currencies in sponsoring illegal trades.