A Chinese organization that U.S. authorities have been tracking for funneling fentanyl precursors across the Pacific also ran a cryptocurrency fraud in Japan, investigators say. The group issued a token linked to a domain mimicking a Japanese fast-payments service, calling the scheme 'Zksync.jp.' Victims lost millions of dollars before the operation was uncovered.
The Zksync.jp play
The scam worked by creating a website that looked nearly identical to a legitimate Japanese instant-payment platform. Investors were directed to buy a new token through that site, with promises of high returns tied to the Zksync brand — a name that has no connection to the real ZKsync protocol. The domain registration and promotional materials pointed back to the same Chinese network involved in the fentanyl trade, according to law enforcement sources.
Why the crossover matters
This isn't just another crypto rug pull. The fact that the same group handled both a public-health threat (fentanyl precursors) and a financial fraud shows how diversified these criminal operations have become. Japanese authorities are now coordinating with U.S. counterparts, who already had intelligence on the organization's chemical shipments. The crypto angle gave them a new trail to follow.
What victims saw
Japanese crypto investors reported that the Zksync.jp site accepted deposits in several cryptocurrencies, then stopped honoring withdrawals after roughly two weeks. Some victims said they tried to contact support but got no response. The total stolen amount is still being tallied, but investigators put it in the low millions of dollars — a significant sum for the relatively small community of Japanese retail crypto traders.
What happens next
Japanese police have seized the Zksync.jp domain and are tracing the wallet addresses linked to the scam. The next step will likely be extradition requests — if the suspects can be identified. U.S. agencies, already building a case around the fentanyl precursor exports, may add fraud charges. A hearing in Tokyo is expected within two weeks to formalize the joint investigation.
