Sanctions
The 14 entities and 14 individuals are responsible for manufacturing and distributing fentanyl, methamphetamine, and ingredients used to make MDMA, as well as trafficking potent drugs often mixed with fentanyl and other drugs. The majority of those sanctioned are in China. Two entities and one individual were based in Canada.“Additionally, we have identified and blocked over a dozen virtual currency wallets associated with these actors. The blocked wallets, which received millions of USD funds over hundreds of deposits, illustrate the scope and scale of the operation targeted today.”
OFAC emphasized that the effort was part of a “whole of government,” multi-departmental approach to combat the fentanyl crisis. The Treasury had also sanctioned 17 individuals and entities based in China and Mexico in May. To date, the Biden administration has imposed 200 sanctions related to this illicit drug trade.
Mr. Adeyemo explained that the government has taken up a network-focused approach, freezing several branches of these illicit operations as they have become more fractured and global, and exerting pressure financially as well.
Indictments
The DEA had led investigations that resulted in the eight charges.Eight Chinese corporations and 12 Chinese nationals were charged with illegally importing fentanyl and related chemicals into the United States. The defendants “openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl” into the country, and had successfully done so in the past.
Five companies were charged in the Middle District of Florida: Hebei Shenghao Import and Export Company, based in Shijiazhuang, China; Lihe Pharmaceutical Technology Company, based in Wuhan, China; Henan Ruijiu Biotechnology Company, based in Zhengzhou, China; Xiamen Wonderful Biotechnology Company, based in Xiamen, China; and Anhui Ruihan Technology Company, based in Hefei, China.
Some of these companies were involved in negotiating sales, and others were involved with transporting fentanyl and related chemicals across borders.
In the Southern District of Florida, two pharmaceutical companies were charged with exporting large amounts of chemicals used to make fentanyl. Of recent concern is xylazine—a non-opioid drug used for sedation and pain relief mainly in horses, cattle, and other animals—which is now being mixed into fentanyl to increase the effects of the drug. The companies also produce several other chemicals, known as “precursors,” used to make fentanyl.
Several of the individuals charged are connected to the Du Transnational Criminal Organization, which the government has flagged as a priority target.