TheBlock
A Chinese network suspected of exporting fentanyl precursors also ran a large-scale crypto fraud from a base in Japan, a Nikkei investigation found. The group allegedly distributed a fraudulent token under the name "zksync.jp" to deceive crypto users worldwide, with losses reaching hundreds of millions of yen — upwards of $1 million.
Why it matters
The scheme rode the ZKsync brand to lend legitimacy to a token that has no connection to the legitimate ZKsync protocol, a Layer-2 scaling network on Ethereum. Fraudsters have repeatedly cloned exchange or protocol names — appending regional domains — to harvest deposits from users who skim past the URL. The Japanese operating base gives the case a cross-border enforcement dimension that goes well beyond a routine rug pull.
Market impact
Nikkei traced more than 120 crypto transactions between the network and U.S.-sanctioned entities, evidence the outlet said points to money laundering. The overlap between fentanyl precursor trafficking and crypto-based fraud is a recurring pattern that U.S. and Japanese authorities have flagged as a national-security concern, and it adds a sanctions-evasion beat to what would otherwise read as a brand-impersonation case.
Frequently asked questions
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What is the fake zksync.jp token?
A fraudulent token distributed under the name zksync.jp to mimic the legitimate ZKsync Layer-2 network on Ethereum. The real ZKsync protocol is not connected to the scheme.
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How much money did the scam take?
Nikkei reports losses of hundreds of millions of yen, or more than $1 million, across crypto users worldwide.
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Who is behind the fraud?
A Chinese network suspected of exporting fentanyl precursors that operated from a base in Japan, according to Nikkei's investigation.
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How did Nikkei link the network to sanctioned entities?
Reporters traced more than 120 crypto transactions between the network and U.S.-sanctioned entities, which they cite as evidence of money laundering.
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Does this affect the real ZKsync protocol?
The legitimate ZKsync Layer-2 network is not part of the scheme. The risk is brand-impersonation — users who land on the wrong URL feed funds to the fraudsters.
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