Chainalysis Reveals $100 Million Crypto-Fuelled Peptide Market in China
Analysts trace illicit crypto flows to Chinese labs pivoting from fentanyl precursors, while Meta secures accounts after AI support exploits and Anthropic deepens ties with the NSA.
Cryptocurrency-funded peptide laboratories in China are generating more than $100 million annually, according to an analysis by blockchain analytics firm Chainalysis. The grey market for these amino acid chains, which are marketed for weight loss and cosmetic rejuvenation, has expanded rapidly, driven by social media trends and demand for so-called "looksmaxing" products.
Chainalysis found that several facilities previously involved in the sale of fentanyl precursors have shifted production to peptides. This transition appears designed to capitalise on the booming cosmetic supplement market while avoiding intensified law enforcement crackdowns on opioid manufacturers. The firm noted that crypto payments are often sent directly to these labs, facilitating a largely unregulated pharmaceutical subindustry.
In a separate cybersecurity development, hackers exploited Meta’s AI-powered customer support system to reset passwords and compromise accounts belonging to high-profile individuals. The breach affected the Instagram accounts of former US President Barack Obama, the chief master sergeant of the US Space Force, and the makeup retailer Sephora. Meta announced in March that it was automating account support functions with AI, and the company has since secured the affected accounts and addressed the vulnerability.
Reports also indicate that AI firm Anthropic is assisting the US National Security Agency in utilising its Mythos vulnerability detection tool. The Financial Times reported that Anthropic is deploying its own engineers to the agency to help it use the tool, which can identify hidden software vulnerabilities with speed. While the NSA has a defensive mission, the deployment raises questions about potential offensive cyber operations, although the newspaper could not confirm if Mythos is being used in active hacking campaigns.
Other notable developments include the appointment of Bill Pulte as acting director of national intelligence by President Donald Trump, replacing Tulsi Gabbard. Additionally, University College London professor Steven Murdoch published evidence suggesting that mysterious GPS satellite data is part of the US military’s Over-the-Air Distribution system for cryptographic keys, based on an analysis of nearly two decades of transmissions.
