Sam Cooper

Central to this strategy is fentanyl—a substance whose reach now extends far beyond Canadian borders.

Fentanyl overdoses. Dirty money flooding real estate. Election interference. Foreign-backed antisemitism igniting across Canadian campuses. These are not isolated crises, warns Calvin Chrustie, a veteran RCMP national security and transnational crime investigator. They are interlinked weapons in an accelerating campaign of hybrid warfare targeting Canada—one that is hollowing out state institutions, fracturing social cohesion, and damaging our alliances. In the view of Chrustie, like other North American experts recently interviewed by The Bureau, adversarial regimes are exploiting Canada’s systemic vulnerabilities to destabilize the country from within, with consequences extending into the United States, Australia, the United Kingdom, Taiwan, Japan, and beyond.

In a sweeping interview with the Macdonald-Laurier Institute, Chrustie laid out a sobering account of how foreign states—chiefly China and Iran—are combining their intelligence capabilities with organized crime networks and proxies such as Mexican cartels to exploit Canadian systems. The Bureau has analyzed Chrustie’s comments and connected them to broader findings in its investigations into transnational crime and state-sponsored influence operations.

At the heart of Chrustie’s warning is a shift in how adversaries like China and Iran operate. No longer relying solely on spies or cyberattacks, they are weaponizing organized crime—leveraging fentanyl trafficking, corruption, and influence operations to destabilize democracies.

“Hybrid warfare is the blending of military and non-military means to weaken or destabilize a target,” Chrustie explained. “For hostile states, transnational crime is a tool—just like cyberattacks or disinformation. China, Russia, Iran, North Korea—the CRINKs—use TOC to raise money, create chaos, and undermine our institutions. TOC is no longer just criminal—it’s geopolitical.”

Fentanyl, in this context, is not only a public health catastrophe but a deliberate weapon.

This erosion now extends beyond physical harms into the social and political realm. Chrustie pointed to radical protest movements and the rise in antisemitic incidents on Canadian campuses as evidence of convergence between TOC and foreign influence operations.

“These aren’t disconnected trends,” he said. “The same threat actors behind fentanyl and money laundering are often involved in radicalization efforts. Iranian networks, for example, have long been tied to money laundering and extremist financing. And those networks are not operating in isolation. They’re aligned with China and the Mexican cartels.”

Chrustie argued that radical activism and identity-based polarization are being amplified not just by ideology, but by illicit foreign-backed financing and digital manipulation. “We’re talking about convergence,” he said. “These networks exploit every vulnerability—from public health to political discourse. Failing to connect the dots between TOC, extremism, and foreign interference means we’re always reacting too late.”

Central to this strategy is fentanyl—a substance whose reach now extends far beyond Canadian borders. “There’s no denying the scale of fentanyl production in Canada. It far outpaces our internal consumption,” he said. “We know Canadian labs are supplying Australia in large quantities. And we don’t know how much is crossing into the U.S.—because we’re not meaningfully tracking it. That lack of visibility alone is a serious national security concern.”

Seizures at the border are not the solution, Chrustie argued, because they’re not the full picture. “The U.S. has robust systems for this. Canada doesn’t,” he said. “So pointing to low seizures as proof of safety is misleading—it really just tells us what we’re not seeing.”

And what we’re not seeing, he says, includes deeply compromised infrastructure. “They exploit Canada’s weaknesses, especially in places like Vancouver, where strategic assets such as ports, shipping companies and supply chain infrastructure are key hybrid warfare targets,” he said. “The intent is to target North America through Vancouver-based assets, because it’s a lower-risk operating environment.”

The financial flows enabling this system are equally opaque—and equally dangerous. Chrustie cited the HSBC cartel laundering scandal, which led to a $1.9 billion U.S. settlement, as a historic warning that was never heeded. “The same cartel networks that emerged through the HSBC probe are engaged in Canada today,” he said.

“At one point, more encrypted communication companies linked to TOC and terrorist financers were based in Vancouver than anywhere else in the world,” he added. “These platforms were used globally—by cartels, arms traffickers, terrorists, state proxies. That tells you all you need to know about how Canada is perceived by adversaries.”

So why is Canada such a prime target? Chrustie identifies four layers of failure: strategy, structure, systems, and culture.

“We lack a cohesive, public national security strategy,” he said. “Unlike the United States or Australia, Canada doesn’t clearly define TOC as a strategic national threat. We don’t have a single, unified doctrine coordinating our federal agencies—police, intelligence, border services, foreign affairs. And TOC thrives in those gaps.”

“Our institutions are siloed,” he continued. “Policing is on the front line, but CSIS, CBSA, military and CSE aren’t always integrated. Right now, the RCMP is expected to shoulder most of the burden. But that’s unsustainable. We need an all-agency model.”

Canada’s legal and regulatory systems are another weak point. “Our legal system is designed for a domestic, rule-of-law environment. It’s ill-suited to confront global adversaries who don’t play by those rules,” Chrustie said. “Disclosure rules from Stinchcombe, Charter constraints, and evidentiary burdens mean that complex prosecutions often fall apart or never proceed.”

Finally, Chrustie warned that Canadian political culture is its most underappreciated vulnerability. “Canadians are culturally indifferent to national security,” he said. “We’ve taken a maternalistic approach—shielding the public from harsh realities, hoping to avoid panic or xenophobia. But that silence has allowed foreign actors to operate here with little resistance.”

“The historical paternalist approach of governments and bureaucrats—‘we won’t discuss these issues in public, we are the experts’—that thinking is outdated,” he said. “China, Russia, Iran and North Korea are the biggest fans of that mindset.”

Asked what a real solution looks like, Chrustie offered a sweeping and urgent framework: a national strategy naming hostile states and TOC as geopolitical threats; centralized agency coordination; intelligence-led disruption operations with allies abroad; and legal reforms enabling proactive countermeasures.

“We either need carve-outs with enhanced powers for TOC-related and foreign threat investigations—or we rely more on foreign-facing disruption efforts and accept that prosecutions are secondary,” he said.

He also emphasized grassroots engagement. “The solutions are in the communities, not in the siloed offices of governments,” Chrustie said. “We need to engage business leaders, civic organizations, educators, and diaspora communities. We need to build national resilience—not just enforce laws after the damage is done.”

His closing warning was as stark as his opening diagnosis.

“Canada is a saturated and vulnerable target,” he said. “And until we stop treating this as a criminal justice problem and start treating it as an integrated national security emergency, we will continue to lose ground.”

“There is no room for spectators.”

Sam Cooper

Elevated production levels in Canada—particularly from highly sophisticated fentanyl “super laboratories,” such as the type dismantled by the Royal Canadian Mounted Police in October 2024—pose a mounting concern.

A rising convergence of Chinese state-linked chemical suppliers, Mexican drug cartels, Chinese narcotics cash brokers operating across North America, and the emergence of Canadian fentanyl “super laboratories” has triggered new concerns for United States national security agencies, according to the latest threat assessment from the Drug Enforcement Administration.

The 2025 National Drug Threat Assessment, released Thursday, describes the crisis as a transnational system driven by industrial-scale synthetic drug production and laundering networks stretching from Guangdong to Sinaloa to Vancouver. While Mexican cartels remain the dominant traffickers of fentanyl and methamphetamine into the United States, the DEA names Canada for the first time as a growing supply-side threat.

Elevated production levels in Canada—particularly from highly sophisticated fentanyl “super laboratories,” such as the type dismantled by the Royal Canadian Mounted Police in October 2024—pose a mounting concern.

The laboratory was uncovered in Falkland, British Columbia—a remote, mountainous region roughly midway between Vancouver and Calgary. While Royal Canadian Mounted Police officials released few details, law enforcement sources in both Canada and the United States confirmed to The Bureau that the raid was triggered by intelligence from the DEA.

According to these sources, the site forms part of a broader criminal convergence involving Chinese, Mexican, and Iranian networks operating across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Quebec. The Bureau’s sources indicate that the Falkland facility was connected to Chinese chemical exporters sanctioned by the United States Treasury, Iranian threat actors, and operatives from Mexican drug cartels.

The 80-page DEA assessment emphasizes that while fentanyl flows from Canada remain smaller in volume compared to Mexico, the potential for Canadian production to scale quickly is a major concern. United States officials warn that law enforcement crackdowns in Mexico could prompt traffickers to shift operations northward, where precursor chemical controls and policing pressures are widely seen as more permissive.

The fallout from the Falkland raid continues to expand. Investigations in British Columbia’s Lower Mainland are probing chemical importers tied to methamphetamine and fentanyl precursor shipments from China. Authorities are examining companies suspected of misrepresenting the commercial purpose and origin of these dual-use chemicals.

One case highlighted by the DEA underscores the scale and sophistication of cartel-linked financial operations. A multi-billion-dollar smuggling and laundering scheme—spanning petroleum, methamphetamine, and heroin—was discovered involving Mexico’s state-owned oil company, Petróleos Mexicanos. The criminal network, according to the report, funneled stolen crude oil into the United States and sold it to American energy firms using trade-based money laundering mechanisms. It was linked to senior figures in multiple cartels, including Sinaloa, the Jalisco New Generation Cartel, La Familia Michoacana, and the Gulf Cartel.

“The investigation has determined that this black-market petroleum smuggling operation is the primary means by which the transnational criminal organization funds its networks,” the DEA report states. “It is estimated that Mexico is losing tens of billions in tax revenue annually, while simultaneously costing the United States oil and gas companies billions of dollars annually due to a decline in petroleum imports and exports during this same period.”

Officials describe the petroleum scheme as a major financial lifeline for cartel power, and say investigations are now expanding to examine American facilitators and corporate enablers.

The DEA further outlines how Chinese and Mexican actors evade international chemical controls through mislabeling, transshipment via third countries, and freight forwarding chains—some knowingly complicit, others unwittingly exploited. Precursor shipments often arrive in the United States or Canada under false declarations, before being diverted to clandestine laboratories in Mexico.

Distribution methods include air cargo, maritime freight, land couriers, and even border tunnels. Once drugs enter the United States, they are routed through interstate highways and distributed to urban markets by street-level dealers, many of whom are recruited through encrypted channels such as Snapchat and Telegram.

Another network detailed in the report illustrates a continent-wide money laundering system anchored by the Chinese underground banking model, with a central hub operating out of New York City. Drug proceeds from across the United States are funneled through marijuana cultivation fronts using nominee owners, casino laundering, and mortgage fraud. Sources familiar with Canadian enforcement files told The Bureau this laundering model mirrors, and is connected to, operations in Vancouver and Toronto, where Triad-linked criminal networks manage shell companies and real estate portfolios.

The report also outlines the extensive involvement of Chinese organized crime groups in illicit cannabis production—particularly in regions where recreational marijuana is legalized or poorly regulated. These groups now dominate marijuana cultivation and distribution in both Canada and the United States. They are producing what the DEA calls the most potent marijuana in the history of trafficking, with tetrahydrocannabinol content averaging between 25 and 30 percent.

These networks rely on a logistics model that spans the continent. Domestically grown cannabis is transported across the United States in personal vehicles, tractor-trailers, and rental trucks. Criminal groups move product from jurisdictions such as British Columbia, California, Ontario, Maine, Oklahoma and Oregon into other states and provinces. High-THC cannabis is also in high demand in international markets such as the United Kingdom, France, and Spain, with overseas shipments typically dispatched via air cargo or container shipping from Canadian ports.

The Bureau has reported extensively on how Triads and individuals linked to Chinese foreign influence efforts have acquired numerous residential and industrial and agricultural properties in British Columbia and Ontario—many of which were converted into covert cannabis grow operations. These properties are routinely purchased in cash, registered under nominee names, and later tied to underground banking flows. According to sources with access to United States enforcement files, the laundering architecture is identical to systems used to recycle fentanyl and methamphetamine profits through bulk cash pickups, informal transfer networks, and false invoicing in international trade.

Seizure statistics underscore the increasing scale and complexity of the fentanyl crisis. In 2024, United States authorities intercepted more than 61 million fentanyl pills, many disguised as prescription pharmaceuticals. Xylazine, a veterinary sedative, remains the most common fentanyl adulterant. But a new, far more powerful veterinary anesthetic—medetomidine—is now being detected in seized drug supplies. The Drug Enforcement Administration flags this trend as extremely dangerous, noting that medetomidine may be 200 to 300 times more potent than xylazine, posing life-threatening risks to drug users and first responders alike.

New data obtained by The Bureau illustrates the geography of fentanyl’s impact across the United States. A study analyzing overdose fatalities from 2018 to 2022, using data from the Centers for Disease Control and Prevention, identifies Ohio as one of the states hardest hit by the synthetic opioid epidemic. The research, conducted by Georgia-based Bader Scott Injury Lawyers, found that Ohio averaged 40.8 overdose deaths per 100,000 residents—nearly 50 percent above the national average of 27.5. The state recorded an average of 4,795 overdose deaths per year during the five-year study period, peaking at 5,397 in 2021.

West Virginia had the highest overdose fatality rate, with an average of 65.9 deaths per 100,000 people, followed by Delaware, Tennessee, Kentucky, and Maryland. Other states in the top ten included Louisiana, Pennsylvania, New Mexico, and Connecticut—all experiencing relentless waves of synthetic opioid deaths.

“These states have been particularly hard-hit by the opioid epidemic, facing challenges with prescription painkillers, heroin, and increasingly, synthetic opioids like fentanyl,” the study concludes. “A combination of socioeconomic factors, healthcare access limitations, and geographic challenges has created perfect conditions for this crisis across these regions.”