Alibaba Group and its US payment processor have agreed to pay $600 million to settle a federal probe into illegal drug sales facilitated through the company’s platforms.
What we know about the settlement
The $600 million figure covers both Alibaba and its US-based payment processor, though the specific processor involved has not been publicly identified. The federal investigation centered on illegal drug sales that took place on Alibaba’s marketplace platforms.
The specific federal agency or agencies leading the probe have not been officially disclosed. That could mean the DOJ, FDA, DEA, or some combination thereof.
The settlement does not appear to involve any cryptocurrency or blockchain-related elements, which separates it from the wave of enforcement actions that have dominated financial headlines over the past two years.
