Chinese Fentanyl Network Tied to $1M+ Crypto Fraud via Fake Zksync.jp Token from Japan

According to a Nikkei investigation published Sunday, a Chinese organization suspected of illegally exporting fentanyl precursors also conducted large-scale cryptocurrency fraud through Japanese entities. At the center is Hubei Amarvel Biotech, a Wuhan-based chemical manufacturer whose executives were convicted in February 2025 of conspiring to import fentanyl precursors into the U.S.

Amavelel's Japanese front, Firsky, served as an operational hub that distributed a fraudulent token called "Zksync.jp," designed to mimic the legitimate ZKsync Ethereum Layer 2 network. The scheme defrauded victims totaling upward of $1 million, with losses concentrated in Japan. Nikkei identified more than 120 suspicious transactions linked to U.S.-sanctioned entities, routed through accounts tied to Wuhan Yuancheng Group. The "zksync.jp" domain was registered in 2023 with a registrant based in Hong Kong with financial ties to Amarvel. Blockchain forensics firm Chainalysis told Nikkei the setup is a common money-laundering method, as Japanese domains carry international credibility useful for concealing illicit activity.