China catch a gang that laundered $1.7 billion
Police in China have arrested 63 suspects for laundering up to twelve billion Chinese yuan ($1.7 billion) through cryptocurrency.
From May 2021 onwards, The gang that was allegedly involved in criminal activity utilized the profits from illegal sources, including pyramid schemes, gambling, and fraud, and turned them into the cryptocurrency Tether.
The gang is believed to have utilized a variety of trading accounts for cryptocurrency to convert the funds back to the Chinese Yuan.
Police in China has arrested 63 suspects for laundering up to twelve billion Chinese yuan ($1.7 billion) via cryptocurrency in light of China’s vigorous crackdown on the trade in digital currencies.
Beginning in May 2021, the gang of criminals utilized the profits from illegal sources like fraud, pyramid schemes, and gambling and then converted to the cryptocurrency tether. It is a stablecoin tied one-to-one to the U.S. dollar. The Public Security Bureau of Inner Mongolia’s Tongliao city, located in the northern part of China, announced in a statement issued over the weekend.
The gang is believed to have used various trading accounts for cryptocurrency to convert the cash back into the Chinese Yuan.
They utilized the messaging app Telegram, which is currently blocked in China, to recruit citizens across the nation who opened crypto accounts to facilitate the laundering of the money, police claimed. They would then receive the commission based on how much money they were laundering, according to the police.
Authorities said that over 130 million Chinese dollars were taken from the bandit.
The case highlights that even after Beijing attempts to wipe out cryptocurrency-related activities, including trading and mining, there is still a large amount of digital currency activity.
Chinese users have usually turned to exchanges based in the United States to trade cryptocurrency. However, this changed as the authorities’ crackdown grew in the last year.
The Public Security Bureau was alerted by the discovery that one suspect had a monthly amount of transactions of 10 million yuan in their bank account of his. The authorities claimed that two suspects had left for Bangkok, Thailand, but were convinced by their family members to go back to China. The police have not provided any details on the specifics of this.
In the year 2012, Chinese police arrested over 1,100 suspected criminals who were using cryptocurrency to transfer money.
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