U.S. Treasury drops hammer on Indian pharma company pumping fentanyl-laced pills into America

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

The United States Treasury Department has taken strong action against two Indian nationals, Sadiq Abbas Habib Sayyed and Khizar Mohammad Iqbal Shaikh, and an India-based online pharmacy, KS International Traders (also known as KS Pharmacy), for supplying counterfeit prescription pills laced with fentanyl and other dangerous drugs.

According to officials, the two men ran the online pharmacy and marketed their products as safe, everyday medicines. In reality, the pills were fake. They looked like well-known medicines such as Oxycodone, Adderall, or Xanax. But hidden inside, many were mixed with fentanyl, fentanyl analogues, and methamphetamine.

This is especially alarming because fentanyl is one of the most powerful synthetic opioids in the world. Even a very small dose can be fatal. Experts in the US say that fentanyl is now the leading cause of overdose deaths across the country. For Americans between the ages of 18 and 45, overdoses are the number one cause of death, with fentanyl driving much of this crisis.

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Officials explained that the counterfeit pills were made to look so real that many customers thought they were buying them from legitimate pharmacies. Instead, they were receiving toxic pills that posed deadly risks.

Online Pharmacy Sanctioned for Drug Trafficking

The online pharmacy, KS International Traders, operated under the ownership of Khizar Mohammad Iqbal Shaikh. Authorities revealed that this company worked as part of a wider trafficking network, connecting with dealers in the United States and the Dominican Republic. Encrypted communication platforms were used to sell and deliver the counterfeit drugs to unsuspecting customers.

Investigations found that the pharmacy continued to operate even after its owner, Shaikh, was indicted by a federal grand jury in New York in 2024 on narcotics-related charges. Despite the indictment, the pharmacy allegedly kept selling counterfeit pills, fueling the illegal drug trade.

The US Treasury noted that online pharmacies like KS International Traders are becoming a major source of fentanyl-laced drugs. Because these pills are designed to look like real, everyday medicines, they often trick consumers into believing they are safe to use. In reality, they contain substances that are highly addictive and life-threatening.

Sanctions Freeze Assets and Block Business Ties

The sanctions were placed under Executive Order 14059, which allows the US government to act against individuals and groups contributing to the spread of international narcotics. With these sanctions, all property and interests linked to Sayyed, Shaikh, and KS International Traders in the United States have been frozen.

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In addition, US citizens and companies are now strictly prohibited from conducting any business with the sanctioned individuals or their pharmacy. If any person or institution is found engaging in trade or financial activities with them, they could also face penalties.

The rules also make it clear that if the designated individuals own 50 percent or more of any company, that company is automatically blocked as well. These measures are enforced on a strict liability basis, meaning authorities do not need to prove intent for penalties to apply.

US officials, including John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized that these steps are aimed at protecting families from the devastating effects of fentanyl and counterfeit drugs. They described how thousands of lives have been lost due to overdoses caused by these dangerous substances. By targeting suppliers outside the United States, authorities believe they can disrupt the networks responsible for smuggling and distributing these deadly pills.

The announcement highlights how international actors are playing a role in America’s opioid crisis. It also shows the increasing importance of global cooperation in tackling the spread of fentanyl and other synthetic opioids.

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