OFAC Sanctions Chinese Chemical Company and Its Associates in Synthetic Opioid Crackdown

TL;DR

• OFAC sanctioned China-based chemical firm Guangzhou Tengyue Chemical Co., Ltd. and two people for trafficking artificial opioids and slicing brokers to the United States.
• The designation contains one Bitcoin handle linked to firm consultant Huang Xiaojun, who coordinated illicit drug shipments to the US.
• This motion is a part of a joint effort with the DEA and FBI to fight the trafficking of artificial medication, in addition to harmful analgesic chemical substances typically used as slicing brokers.

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), in coordination with the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), sanctioned the China-based chemical firm Guangzhou Tengyue Chemical Co., Ltd. (Guangzhou Tengyue), together with two of its associates for synthetic opioid trafficking. A crypto handle was included for Huang Xiaojun, a Chinese nationwide who tried to promote managed substances on behalf of Guangzhou Tengyue to a U.S. purchaser in 2023.

According to OFAC, the designated entity particularly dealt in nitazenes, artificial substances that may trigger respiratory failure and are trafficked and abused for his or her opioid-like results. Guangzhou Tengyue additionally marketed the sale of xylazine (often known as “tranq”), a veterinary sedative used as a slicing agent that’s significantly harmful as a result of it doesn’t reply to Narcan, the usual overdose reversal therapy. Despite these dangers, Guangzhou Tengyue actively marketed these substances and assured consumers their packages would clear U.S. customs.

Guangzhou Tengyue’s on-chain exercise

The crypto handle included for Xiaojun was used in Guangzhou Tengyue’s try to promote a managed substance to a U.S. purchaser in 2023. As proven in the Reactor graph beneath, funds have been additionally made to this handle by crypto ATMs and darknet market distributors. Xiaojun’s handle acquired $1.26 million between January 2021 and January 2025.

Strategic implications

Today’s motion demonstrates the U.S. authorities’s continued concentrate on disrupting the monetary infrastructure supporting worldwide drug trafficking operations, together with cryptocurrency fee channels. By designating particular cryptocurrency addresses, OFAC supplies concrete operational intelligence that helps cryptocurrency companies establish and forestall transactions with drug trafficking operations.

We have labeled the above Bitcoin handle in our product suite and will proceed monitoring for extra addresses and entities related to artificial opioid trafficking operations.

This web site accommodates hyperlinks to third-party websites that aren’t beneath the management of Chainalysis, Inc. or its associates (collectively “Chainalysis”). Access to such data doesn’t indicate affiliation with, endorsement of, approval of, or advice by Chainalysis of the location or its operators, and Chainalysis is just not chargeable for the merchandise, companies, or different content material hosted therein. 

This materials is for informational functions solely, and is just not supposed to supply authorized, tax, monetary, or funding recommendation. Recipients ought to seek the advice of their very own advisors earlier than making all these choices. Chainalysis has no duty or legal responsibility for any resolution made or some other acts or omissions in reference to Recipient’s use of this materials.

Chainalysis doesn’t assure or warrant the accuracy, completeness, timeliness, suitability or validity of the data in this report and won’t be chargeable for any declare attributable to errors, omissions, or different inaccuracies of any a part of such materials.

The submit OFAC Sanctions Chinese Chemical Company and Its Associates in Synthetic Opioid Crackdown appeared first on Chainalysis.