Two Chinese pharmaceutical firms and six Chinese nationals are facing new charges in Dayton, OH after federal prosecutors said they were part of a drug-trafficking network that provided material support to the Cártel del Golfo (CDG), a Mexican criminal syndicate that was designated by U.S. officials last year as a foreign terrorist organization (FTO).

The indictment, unsealed March 24 in the Southern District of Ohio, alleges that Shandong Believe Chemical Company PTE Ltd., Shandong Ranhang Biotechnology Co. Ltd., and six individual defendants knowingly supplied fentanyl precursors and cutting agents to traffickers in the United States, including the CDG.  Prosecutors allege the defendants continued supplying CDG after its February 2025 terrorist designation and with knowledge of it. 

The addition of terrorism-related charges to a drug case marks an unusual move for federal prosecutors.

“This new indictment marks the first time in the Southern District of Ohio that we have brought charges for providing material support to a Mexican drug cartel designated as a foreign terrorist organization by way of President Trump’s Executive Order of January 20, 2025, and Secretary Rubio’s February 20, 2025 designation,” said U.S. Attorney Dominick Gerace in a statement.

In an analysis of the allegations, TRM Labs said the indictment also highlights the central role of cryptocurrency in the alleged scheme. Traffickers were directed to send digital assets to wallets controlled by the defendants, after which funds were allegedly moved through multiple wallets and bank accounts before being converted into foreign currency and routed to international banks. TRM said that pattern matches laundering methods it has tracked across cartel-linked networks. 

The case underscores the scale of crypto use among Chinese drug precursor manufacturers. The blockchain analytics firm said that about 97 percent of those vendors accept cryptocurrency, with on-chain inflows rising from $30.9 million in 2023 to $39.1 million in 2025. 

TRM said the indictment signals that U.S. enforcement is moving beyond cartel operatives themselves and increasingly targeting upstream suppliers, payment facilitators and wallet holders linked to designated cartel networks. 

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