Chinese Police Arrest Crypto Criminals For Laundering Over 5 Billion Dollars

Chinese Police Arrest Crypto Criminals For Laundering Over 5 Billion Dollars

As the country ramps up measures to curb illicit financial flows, Chinese police have busted a massive criminal organization believed to be responsible for a $40 worth of crypto money laundering billion yuan ($5.6 billion).

In a nationwide police operation known as "One Hundred Days of Action," police in southern China's Hunan province on Monday said they had arrested 93 suspects across the country, checking more than 10 locations actual point. , confiscated more than 100 electronic devices and froze about 300 million yuan related to the case.

How big is the scam?

According to crypto reporter Colin Wu, who quoted Weixin on September 26, nine cases have been made public, with one of them related to the massive money laundering gang "9.15", allegedly using cryptocurrency to handle money laundering up to 40 billion VND. Yuan ($5.6 billion) and has been involved in more than 300 phone sales cases.

The entire money-laundering criminal organization headed by Hong Mou has been dismantled as a result of an online operation that caught 93 suspects. 

It resulted in the destruction of more than 10 money laundering and hiding places, the seizure of more than 100 cell phones and computers related to the case, the seizure and freezing of 300 million yuan of money related to the case, and recover 7.8 million yuan in economic losses suffered by the victims.

The results of the investigation indicate that since 2018, criminal gangs controlled by suspect Hong have been in contact with collection and payment platforms across China, converting proceeds from gambling and fraud illegal into cryptocurrency, then cash out. US dollars to wash them.

Many domestic companies in China have also started using illegal money transfers as a quick and safe way to send money. Allow other shareholders to distribute funds in a way that benefits them.

China among early adopters of digital assets

Interestingly, data from Chainalysis states that China is now among the top 10 countries for digital asset adoption despite a severe crackdown and restrictions on businesses related to digital assets electronic money.

Over the past two years, many provinces in China have gained access to the country's digital yuan, which has gained popularity as a form of payment. The most recent show covers Guangdong, Jiangsu, Hebei and Sichuan as the four new regions.

As the digital yuan became popular outside of China, other countries started taking their own CBDC initiatives more seriously. A recent plan to rein in the crypto industry was funded by a liberal senator from Australia and includes disclosure rules for the nation's overseas use of CBDCs.


Sep 26, 2022

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