Blocking Digital Transactions: OFAC Targets Fentanyl Distribution Network Through Cryptocurrency Sanctions
- U.S. Treasury sanctions two Indian nationals and their online pharmacy for fentanyl trafficking via cryptocurrency and encrypted platforms. - The operation sold counterfeit pills laced with synthetic opioids to U.S. consumers, deceiving them as legitimate medications like Adderall and Xanax. - Sanctions freeze assets and block transactions, targeting crypto wallets to disrupt transnational drug networks linked to U.S. opioid deaths. - The case highlights India-U.S. collaboration against cross-border traf
The Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury has imposed sanctions on two Indian citizens and an India-based online pharmacy due to their participation in a fentanyl distribution scheme that utilized cryptocurrency for payments. Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh were sanctioned under Executive Order 14059 for distributing counterfeit prescription drugs containing fentanyl, methamphetamine, and synthetic opioids to customers in the United States. KS International Traders (KS Pharmacy), an online pharmacy owned by Shaikh, was also blacklisted for its involvement in the illegal operation. These parties worked with traffickers in both the Dominican Republic and the U.S., using encrypted messaging services and a crypto wallet to promote and sell these illegal substances Treasury Sanctions Indian Nationals and Online … [ 1 ].
This operation, which crossed several borders, involved selling fake pills as if they were legitimate medications like Oxycodone, Adderall, and Xanax. In reality, these pills contained hazardous synthetic opioids, misleading American buyers into thinking they were purchasing genuine pharmaceuticals. Sayyed and Shaikh were indicted by a federal grand jury in New York on drug charges in September 2024. Despite these charges, Shaikh continued to run KS International Traders, illustrating the ongoing nature of the criminal enterprise OFAC Sanctions Two Indians in Crypto-Linked Fentanyl Operation [ 2 ]. The use of cryptocurrency in this context highlights the increasing use of digital assets to launder money and bypass conventional financial controls. OFAC stated that the sanctions are intended to break the drug trafficking chain rather than simply penalize those involved 2 Indians Sanctioned By US For Selling Fake Pills Filled With … [ 3 ].
These sanctions freeze all assets and financial interests in the U.S. held by the named individuals and organizations. Any dealings with these assets are forbidden unless specifically authorized by OFAC. Furthermore, any company that is at least 50% owned by the sanctioned individuals is also blocked. Breaking these rules can lead to civil or criminal consequences, as OFAC enforces a strict liability standard for violations US sanctions 2 Indians for supplying counterfeit fentanyl-laced … [ 4 ]. This move is part of the wider U.S. strategy to address the opioid epidemic, which has resulted in over 450,000 deaths in the last ten years, with fentanyl being a major contributor. The Drug Enforcement Administration (DEA) has reported a rise in fake pills from online pharmacies, many of which use misleading branding to appear as legitimate suppliers US treasury sanctions two Indians, online pharmacy for supplying ... [ 5 ].
The U.S.-India Drug Policy Framework, created to tackle international drug smuggling, has led to greater cooperation between the two countries. The Treasury noted that Indian online pharmacies have played a role in the fentanyl crisis by providing precursor chemicals and synthetic opioids to cartels in the U.S. and Mexico. This case highlights how drug trafficking networks operate across borders, using digital technology and encrypted communication to stay hidden US Sanctions Indians for fake fentanyl-laden pills [ 6 ]. In October 2024, the DEA issued a warning about the risks of illegal online pharmacies, pointing to an increase in counterfeit pills being sent to unsuspecting buyers in the U.S. OFAC Sanctions and Crypto Transactions Statistics … [ 7 ].
Reviewing the sanctions shows a targeted approach to cutting off the financial resources that support illegal drug activities. The crypto wallet associated with Sayyed was specifically sanctioned, showing OFAC’s growing oversight of digital asset transactions. By 2025, OFAC had blacklisted 1,245 crypto wallets tied to unlawful conduct, with
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