US sanctions two Indians, online pharmacy for supplying fentanyl-laced counterfeit pills

Treasury move highlights India’s role in global illicit drug supply chain

The United States has sanctioned two Indian nationals and an India-based online pharmacy for allegedly flooding the American market with counterfeit prescription drugs laced with fentanyl and methamphetamine.

Who has been sanctioned?

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on September 24 designated: Sadiq Abbas Habib Sayyed, Khizar Mohammad Iqbal Shaikh, and KS International Traders (also known as KS Pharmacy), an online pharmacy run by Shaikh.

Both men, based in India, allegedly worked with traffickers in the United States and the Dominican Republic to market counterfeit pills as legitimate pharmaceutical products. In reality, the pills were laced with fentanyl, fentanyl analogues, and methamphetamine.

How the network operated

Sayyed and Shaikh used encrypted messaging platforms to advertise and sell their products to unsuspecting buyers. Shaikh, despite being indicted by a US grand jury in September 2024, continued to operate KS International Traders as a front.

The counterfeit pills often resembled popular medications like Oxycodone, Adderall, and Xanax. But instead of legitimate drugs, buyers received dangerous substitutes that fuelled America’s spiralling opioid crisis.

Why this matters for the US

Fentanyl remains the leading cause of overdose deaths in the US, killing hundreds of thousands in recent years. It is now the top cause of death for Americans aged 18 to 45.

“Too many families have been torn apart by fentanyl. Today, we are acting to hold accountable those who profit from this poison,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence.

The action was taken under Executive Order 14059, which targets the international proliferation of illicit drugs.

US authorities warn that these suppliers ship counterfeit drugs directly to US customers and also sell precursor chemicals to Mexican cartels, which then produce fentanyl in clandestine labs.

The US Drug Enforcement Administration (DEA) had already warned in October 2024 of a surge in illegal online pharmacies pushing fentanyl-laced pills to unsuspecting American customers.

Implications of the sanctions

As a result of the designations:

• All property and interests of Sayyed, Shaikh, and KS International Traders in the US are blocked.
• U.S. citizens and entities are barred from transacting with them.
• Any firm found doing business with them could also face secondary sanctions.

These measures are designed to choke off financial flows and global networks that sustain the illegal fentanyl trade, the press release said. OFAC added that the goal of sanctions is not just punishment but to 'bring about positive change in behavior.'

Wider crackdown on fentanyl

The move was coordinated with multiple US agencies, including the Department of Justice, the DEA, Homeland Security Investigations, the IRS, and the U.S. Postal Inspection Service.

The sanctions also tie into the US-India Drug Policy Framework, under which both countries have pledged to tackle drug trafficking, strengthen supply chains, and protect public health.

Fentanyl has become a geopolitical flashpoint. For Washington, cutting supply chains, whether in Mexico, China, or India, is central to its strategy to 'Make America Fentanyl Free,' a pledge repeatedly invoked by the Biden and Trump administrations alike.