U.S. prosecutors have filed charges against two Chinese pharmaceutical companies and six individuals for fentanyl trafficking and money laundering through cryptocurrency. The case is linked to AML efforts, as the defendants allegedly used cryptocurrency wallets to transfer funds, affecting liquidity and crypto markets. Prosecutors allege that the companies sold fentanyl precursors to U.S. traffickers and layered transactions through overseas banks. AML measures and surveillance were central to the FBI’s “Operation Box Cutter” investigation. If convicted, the suspects could face life imprisonment for drug charges and up to 20 years for money laundering and terrorism.

ChainThink reports that on March 26, according to The Block, a U.S. federal grand jury in Ohio indicted two Chinese pharmaceutical companies—Shandong Believe Chemical Company Pte Ltd. and Shandong Ranhang Biotechnology Co. Ltd.—along with six Chinese citizens, accusing them of using cryptocurrency to facilitate fentanyl trafficking and money laundering.

The prosecution alleges that the defendant sold fentanyl cutting agents, including medetomidine, to drug traffickers in the United States and abroad, and instructed customers to make payments through crypto wallets under their control, with funds subsequently layered and transferred to overseas financial institutions.

This case was driven by the FBI’s “Operation Box Cutter,” and the three defendants are also charged with attempting to provide material support to a Mexican drug cartel designated as a foreign terrorist organization. If convicted, the defendants face up to life imprisonment on drug trafficking charges, and up to 20 years on money laundering and terrorism-related charges.