In 2023, China-based precursor manufacturers received over $26 million in cryptocurrency, with 60% of payments made in Bitcoin, according to TRM Labs. This marked a 600% increase in crypto deposits compared to 2022.
TRM Labs, backed by major financial firms, highlighted that 11 manufacturers accounted for over 70% of these crypto-denominated sales. Payments primarily came from unhosted wallets, exchanges, and payment services.
Bitcoin was the top choice, followed by TRON and Ethereum. Despite the rise in crypto payments, these manufacturers also accept fiat currencies through traditional services like PayPal and Western Union.
The main targets for these precursors include Canada, the Netherlands, Australia, Germany, and the U.S. This surge in crypto payments underscores a significant shift in how Chinese drug manufacturers operate, indicating a broader trend towards digital transactions in illicit markets.
