The U.S. Immigration and Customs Enforcement (ICE) is keeping a close eye on the use of cryptocurrencies for the illicit procurement of opioids.
In his written testimony published January 25, ICE Homeland Security Investigations (HSI) Office of Illicit Trade, Travel, and Finance Deputy Assistant Director Greg Nevano highlighted the crisis of heroin and illicit fentanyl in the U.S. and the efforts of the ICE to target, investigate, disrupt, dismantle and bring to justice the criminal elements responsible for the manufacturing, smuggling, and distribution of dangerous opioids.
Among other efforts, Nevano outlined the agency's efforts to monitor use of cryptocurrencies for illegal purchases of opiods. He said:
“ICE conducts proactive investigations that focus on the two key payment systems which support illicit procurement of opioids: money service businesses (MSBs) and cryptocurrencies.”
Nevano explained that on dark net marketplaces and other “unindexed” websites, the payment for illicit opioid purchases is often made via cryptocurrencies such as Bitcoin or Monero, among many others. He said that the ICE uses undercover techniques and also uses “blockchain technology exploitation tools” to crack down on such activities.
“ICE uses undercover techniques to infiltrate and exploit peer-to-peer cryptocurrency exchangers who typically launder proceeds for criminal networks engaged in or supporting dark net marketplaces. Furthermore, ICE leverages complex Blockchain technology exploitation tools to analyze the digital currency transactions and identify transactors,” Nevano added.
