TL;DR
- OFAC sanctioned China-based chemical company Guangzhou Tengyue Chemical Co., Ltd. and two individuals for trafficking synthetic opioids and cutting agents to the United States.
- The designation includes one Bitcoin address linked to company representative Huang Xiaojun, who coordinated illicit drug shipments to the US.
- This action is part of a joint effort with the DEA and FBI to combat the trafficking of synthetic drugs, as well as dangerous analgesic chemicals often used as cutting agents.
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 company Guangzhou Tengyue Chemical Co., Ltd. (Guangzhou Tengyue), along with two of its associates for synthetic opioid trafficking. A crypto address was included for Huang Xiaojun, a Chinese national who attempted to sell controlled substances on behalf of Guangzhou Tengyue to a U.S. buyer in 2023.
According to OFAC, the designated entity specifically dealt in nitazenes, synthetic substances that can cause respiratory failure and are trafficked and abused for their opioid-like effects. Guangzhou Tengyue also advertised the sale of xylazine (known as “tranq”), a veterinary sedative used as a cutting agent that is particularly dangerous because it does not respond to Narcan, the standard overdose reversal treatment. Despite these risks, Guangzhou Tengyue actively marketed these substances and assured buyers their packages would clear U.S. customs.
Guangzhou Tengyue’s on-chain activity
The crypto address included for Xiaojun was used in Guangzhou Tengyue’s attempt to sell a controlled substance to a U.S. buyer in 2023. As shown in the Reactor graph below, payments were also made to this address by crypto ATMs and darknet market vendors. Xiaojun’s address received $1.26 million between January 2021 and January 2025.
Strategic implications
Today’s action demonstrates the U.S. government’s continued focus on disrupting the financial infrastructure supporting international drug trafficking operations, including cryptocurrency payment channels. By designating specific cryptocurrency addresses, OFAC provides concrete operational intelligence that helps cryptocurrency businesses identify and prevent transactions with drug trafficking operations.
We have labeled the above Bitcoin address in our product suite and will continue monitoring for additional addresses and entities connected to synthetic opioid trafficking operations.
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