As part of the sanctions, OFAC also designated KS International Traders, an India-based online pharmacy allegedly owned and operated by Shaikh. The company, also known as “KS Pharmacy,” played a central role in distributing counterfeit drugs while posing as a legitimate pharmacy.
“Too many families have been torn apart by fentanyl. Today, we are acting to hold accountable those who profit from this poison,” said Under Secretary for Terrorism and Financial Intelligence John K Hurley. “Treasury will continue to advance President Trump’s commitment to Make America Fentanyl Free by targeting drug traffickers.”The action was taken under Executive Order 14059, which authorises sanctions against those involved in the international proliferation of illicit drugs and their means of production. The move was coordinated with several US agencies, including the Department of Justice (DOJ), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), IRS–Criminal Investigations, and the US Postal Inspection Service.
Online pharmacies fueling the fentanyl crisis
The announcement highlights a growing trend in the global drug trade: the use of illegal online pharmacies to distribute counterfeit pills. In recent years, many of these operations, including some based in India, have supplied fentanyl-laced medications disguised as legitimate drugs such as Oxycodone, Adderall, and Xanax.
These pills are frequently sold to unsuspecting consumers in the US, many of whom believe they are purchasing from licensed pharmacies. The DEA issued a warning in October 2024 citing a significant increase in such activity, emphasising the risks posed by unregulated online drug sales.
Indian nationals indicted and sanctioned
Sayyed and Shaikh were previously indicted in September 2024 by a federal grand jury in the Southern District of New York on narcotics-related charges. The indictment accused them of working with drug traffickers in the Dominican Republic and the US to sell counterfeit pills as part of a global operation.The two allegedly used encrypted messaging platforms to facilitate their illegal business, marketing the pills as affordable pharmaceuticals to American buyers. In reality, the products were filled with dangerous synthetic drugs.
Despite his indictment, Shaikh reportedly continued to operate KS International Traders, prompting OFAC to designate the entity alongside him.
Implications of the sanctions
Under the sanctions, all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of US persons are now blocked. US persons are prohibited from engaging in transactions with the sanctioned individuals and company unless authorised by OFAC.
Entities that are 50% or more owned by one or more sanctioned persons are also considered blocked. OFAC warned that both US and foreign persons could face civil or criminal penalties for violations of these sanctions.
The sanctions are designed not only to disrupt criminal networks but to encourage compliance and behavior change.
“The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior,” said OFAC in a statement.
OFAC also reminded individuals and entities that designated persons may request removal from the Specially Designated Nationals and Blocked Persons List (SDN List) by following established procedures.
US-India cooperation
The Treasury noted that this action aligns with ongoing efforts under the US-India Drug Policy Framework, which seeks to combat the global drug trade through improved enforcement, stronger public health policies, and more secure supply chains.
