Chinese police arrest crypto criminals for laundering over $5B
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As the nation ramps up measures to curb illicit money flows, Chinese police have dismantled a massive criminal organization said to be responsible for a 40 billion yuan ($5.6 billion) cryptocurrency laundering case.
In a nationwide law enforcement operation known as “Hundred Day Action,” police in Hunan province South China said on Monday that they had arrested 93 suspects across the nation, broken into more than 10 physical locations, seized more than 100 electronic devices, and frozen about 300 million yuan related to the case.
What a big scam it was
Crypto reporter Colin Wu, quoted by Weixin on September 26, said nine cases were made public, one of which involved the “9.15” major money laundering gang accused of using cryptocurrency to launder up to 40 billion. yuan ($5.6 billion) and has been involved in more than 300 remote transactions.
The entire money laundering criminal organization led by Hong Mou was dismantled as a result of an online operation that netted 93 suspects.
It led to the destruction of more than 10 money laundering and hiding places, the seizure of more than 100 case-related mobile phones and computers, the seizure and freezing of 300 million yuan of case-related funds, and the recovery of case-related funds. 7.8 million yuan in financial losses to the victims.
Investigation findings show that since 2018, criminal gangs controlled by suspect Hong have contacted collection and payment platforms located throughout China, converted illegal winnings from gambling and fraud into cryptocurrencies, and then cashed them in US dollars for laundering.
Many domestic companies in China have also started using illegal remittances as a fast and safe way to send money. Allow other shareholders to distribute funds in a way that unfairly benefits them.
China is one of the leading adopters of digital assets
Interesting, Alleged chain analysis data China is now in the top 10 countries for adopting digital assets, despite severe limitations and restrictions on cryptographic efforts.
Over the past two years, many Chinese provinces have adopted the country’s digital yuan, which has grown in popularity as a means of payment. Most recently, the program included Guangdong, Jiangsu, Hebei and Sichuan as four new regions.
As the digital yuan has gained popularity outside of China, other countries have begun to take a more serious look at their own CBDC initiatives. A recent plan to regulate the cryptocurrency industry was sponsored by a Liberal senator from Australia and included disclosure rules for foreign use of CBDC in the country.