Fentanyl-Linked Chinese Network Behind Crypto Fraud with Fake ‘Zksync.jp’ Token: Nikkei
A Chinese criminal network suspected of exporting fentanyl precursors has been linked to a major cryptocurrency fraud operation based in Japan, according to a Nikkei investigation.
Key Findings of the Investigation
Nikkei revealed that the same group behind fentanyl chemical exports ran a large-scale crypto scam. They created and distributed a fake token called “Zksync.jp” to deceive crypto users worldwide. Victims lost hundreds of millions of yen (over $1 million).
The network used Japanese domains and companies to appear legitimate and launder money through crypto transactions.
The Criminal Network
The operation centers around Hubei Amarvel Biotech, a Wuhan-based company. Two of its executives were convicted in the US in 2025 for importing fentanyl precursors.
In Japan, the group operated through Firsky, a company in Nagoya. A Chinese national named Xia Fengzhi allegedly directed logistics and money movement from there. Firsky was liquidated in 2024.
How the Fake Zksync.jp Fraud Worked
The scammers issued a fraudulent token named “zksync.jp” that imitated the legitimate ZKsync (Ethereum Layer 2) project. They used a Japanese domain to gain trust.
- The fake token tricked users into sending funds.
- Losses affected victims in Japan and internationally.
- The domain registrant was a Chinese national in Hong Kong with ties to the network.
Blockchain analysis showed more than 120 transactions linked to U.S.-sanctioned entities, indicating money laundering.
Connection to Fentanyl Trade
The same network has strong ties to Wuhan Yuancheng Group, led by Chuen Fat Yip — a major figure wanted by the US with a $5 million reward for his arrest.
Japan’s open financial system and proximity to China made it an attractive base for disguising illicit funds as legitimate crypto activity.
Current Situation
This case highlights the growing overlap between drug trafficking and crypto fraud. Japan is expanding its crypto regulations, including plans for crypto ETFs, while strengthening anti-fentanyl efforts with the US and UN.
Authorities still struggle to track drug money moving through cryptocurrencies.
