The United States Department of the Treasury has included different cryptocurrency addresses to its Specially Designated Nationals (SDN) list under the Foreign Narcotics Kingpin Designation Act, otherwise known as the Kingpin Act. These addresses and the people related to them have been considered to be related to foreign narcotics operators.
The Treasury updated its SDN list on Wednesday. The three purported narcotic operators related to these addresses are Chinese citizens Xiaobing Yan, Fujing Zheng, and Guanghua Zheng. The three people all have related Bitcoin (BTC) addresses specified on the SDN list, and Guanghua Zheng furthermore includes a Litecoin (LTC) address.
As clarified in a White House press release from 2015, the Kingpin Act exists to boycott trading and transactions between narcotics traffickers and U.S entities — specifically companies and people. Under the act, government branches facilitate to examine foreign narcotics traffickers. They are subsequently named in a list that’s brought before the President, who then decides whether it is fitting to force U.S. sanctions.
U.S. Treasury Secretary Steven Mnuchin trusts that Bitcoin is vulnerable to money laundering. Mnuchin stated that he aims to carefully screen Bitcoin and thinks that billions of dollars in cryptocurrency are utilized for unlawful purposes.
Mnuchin has also asserted that Bitcoin is utilized for money laundering much more successfully than the U.S. dollar. Mnuchin said the government combats “bad actors in the U.S. dollar every day to protect the U.S. financial system.”