- Blockchain analysis of Amarvel’s cryptocurrency accounts has exposed links between a Japanese-based fentanyl operation, sanctioned entities and suspected scam activity.
- Investigators uncovered evidence suggesting the network used digital assets to move funds internationally while operating through companies connected to China and Japan.
- The findings have expanded scrutiny of Japan’s role in global fentanyl trafficking routes and the challenges authorities face tracking crypto-based crime.
Fresh analysis of cryptocurrency transactions has uncovered four digital wallets connected to a Chinese fentanyl trafficking organisation that operated from Japan, reinforcing US assessments that the country has become a significant transit hub in the global smuggling network.
The wallets were identified through court evidence from the US case against Hubei Amarvel Biotech, a Chinese chemical manufacturer whose executives were jailed in 2025. According to investigators, the company operated from Nagoya, where it received cryptocurrency payments from Mexican drug cartels and other customers buying fentanyl precursor chemicals, while also using digital assets to move funds internally and externally.
One of the identified Tron wallets showed links to suspected financial fraud through transfers involving scam cryptocurrency tokens. Investigators also uncovered connections between the operation and a Japanese internet domain, online aliases and businesses associated with China’s Hebei province.
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Following the Money
Using blockchain records, investigators analysed transactions involving Amarvel’s four wallets after the company established its Nagoya base in September 2022. The review identified more than 120 cryptocurrency interactions with organisations sanctioned by US authorities, indicating the operation was likely connected to a much larger criminal network.
The investigation also traced cryptocurrency transfers involving sanctioned Chinese national Xia Fengbing. Independent blockchain specialists concluded the repeated movement of funds to common destination wallets over an extended period provided strong evidence of a financial relationship between the parties.
Authorities continue examining the organisation, while specialists say Japan’s location near China and its comparatively open financial system make it an appealing corridor for laundering criminal proceeds.
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