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summary
OFAC sanctioned China-based chemical company Guangzhou Tengyue Chemical Co., Ltd. and two individuals for smuggling synthetic opioids and cutting agents into the United States.
The sanctions include Bitcoin addresses associated with Guangzhou Tengyue official Huang Xiaojun, who coordinated shipments of illegal drugs to the United States.
This action is part of a joint effort with the DEA and FBI to combat the trafficking of synthetic drugs and dangerous painkilling 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 U.S. Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), sanctioned China-based chemical company Guangzhou Tengyue Chemical Co., Ltd. (Guangzhou Tengyue) and two of its associates for smuggling synthetic opioids . Sanctions also apply to the cryptocurrency address of Chinese national Huang Xiaojun, who attempted to sell controlled substances to U.S. buyers on behalf of Guangzhou Tengyue in 2023.
According to OFAC, the designated entities trafficked nitazenes, a synthetic substance that can cause respiratory failure and is abused for its opioid-like effects. Guangzhou Tengyue also promoted the sale of xylazine (“tranq”), a veterinary sedative that is a particularly dangerous cutting agent because it is resistant to Narcan (a standard overdose treatment). Despite these risks, Guangzhou Tengyue actively sold these substances, assuring buyers that they would clear U.S. customs.
Guangzhou Tengyue's on-chain activities
Huang Xiaojun's cryptocurrency address was used by Guangzhou Tengyue in an attempt to sell controlled substances to a US buyer in 2023. Payments to this address have also been observed from cryptocurrency ATMs and darknet market vendors, as shown in the investigation tool graph below. Xiaojun's address received $1.26 million from January 2021 to January 2025.
Strategic Implications
"This action demonstrates the U.S. government's continued focus on disrupting the financial infrastructure of international drug trafficking organizations, particularly their cryptocurrency payment channels. By designating specific cryptocurrency addresses, OFAC is providing cryptocurrency businesses with specific operational information to identify and prevent transactions with drug trafficking organizations."
We have labeled the above Bitcoin addresses in our products and will continue to monitor additional addresses and organizations associated with synthetic opioid trafficking.
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