Key facts
- A Chinese organization suspected of fentanyl precursor smuggling is linked to cryptocurrency fraud in Japan.
- The organization allegedly used Japan as a base for large-scale crypto fraud.
- Evidence suggests links to US-sanctioned entities and money laundering activities.
- Two Chinese nationals, Qingzhou Wang and Yiyi Chen, were convicted in the US for fentanyl precursor trafficking and money laundering.
- Xia Fengzhi, identified as "the boss in Japan," headed a Japanese company, Fushikai Trading Co Ltd (Firsky), which was linked to the Chinese organization.
- US Ambassador George Glass has urged Japan to help prevent fentanyl trafficking through its territory.
An investigation by Nikkei, in collaboration with Bellingcat, has uncovered evidence suggesting a Chinese organization involved in the illegal export of fentanyl precursor chemicals has also engaged in large-scale cryptocurrency fraud, utilizing Japan as a base of operations. This development comes as US authorities have prosecuted Chinese nationals for trafficking these precursors.
Earlier this year, Qingzhou "Bruce" Wang and Yiyi "Chiron" Chen, executives from the Wuhan-based chemical firm Hubei Amarvel Biotech (AmarvelBio), were convicted in New York for conspiring to import fentanyl precursors and money laundering. The pair were lured from China to Fiji as part of a DEA operation and extradited to the US. US Attorney Danielle R. Sassoon stated they "conspired to import massive amounts of fentanyl precursors… with callous disregard for the effect that such deadly chemicals would ultimately have here in the United States."
However, court documents revealed potential links to Japan. Nikkei's investigation focused on Xia Fengzhi, a Chinese man referred to in legal proceedings as "the boss in Japan." Nikkei identified an individual by this name as the owner of Fushikai Trading Co Ltd, a Chinese company operating under the brand name "Firsky." Nikkei found that Firsky's Japanese subsidiary, registered in Nagoya, was headed by Xia Fengzhi, and that Qingzhou Wang, one of the convicted AmarvelBio executives, was listed as the supervisor of the Chinese company.
Bellingcat's financial investigations team independently verified these connections, finding evidence that AmarvelBio and Firsky are effectively the same entity. While domain records were protected by privacy services, court proceedings made certain information public. The DEA seized AmarvelBio's website, displaying a notice to users attempting to access the site.
US Ambassador George Glass has publicly warned Japan about the risks of fentanyl trafficking through its territory, emphasizing the role of the "Chinese Communist Party (CCP)" in fueling the crisis by trafficking precursor chemicals. A 2024 report from the US Department of the Treasury identified China as a "major supplier" of these materials. Following reports of a suspected fentanyl trafficking base in Nagoya, Nagoya Mayor Ichiro Hirosawa acknowledged the issue as a "grave issue" and pledged intensified drug-abuse prevention education, noting the suspected company had reportedly withdrawn from the city.
Japanese lawmakers have also voiced concerns. Sohei Kamiya, leader of the Sanseito party, warned in a 2024 Diet session against underestimating the threat of synthetic opioids like fentanyl, citing over 100,000 opioid-related deaths in the US in 2021 and 2022. Kamiya expressed concern that fentanyl, sometimes mixed with other drugs, could eventually flow into Japan, and noted that traffickers are producing chemically altered analogues to evade detection.