China Discovers Major Crypto Laundering Scam, Police On Arrest Spree

The Chinese government has never supported crypto activities since the emergence of the industry. The People’s Bank of China took further action against the digital industry and banned all local operations of digital assets.

Ever since the crypto ban in China, the government has never failed to remind that no digital activity can thrive in the country.

But China’s residents are still very interested in digital assets despite the government’s negative stance. Chainalysis research reported that China is among the top 10 global crypto adopters. Also, according to recent reports, some crypto operations still happen underground without the government’s knowledge.

Chinese authorities freeze 42 million dollars

A local Chinese media outlet recently reported the arrest of 93 people involved in crypto-related money laundering.

According to the report, law enforcement officers in Hengyang City uncovered a criminal group that laundered 40 billion yuan in digital assets. The illicit fund is approximately $5.6 billion if converted to the US dollar.

Police raided ten locations, arrested 93 suspects and seized more than 100 electronic devices. In addition, the authorities froze about 42 million dollars in an illegal operation called Action of the Hundred Days.

In the report, Hundred Days Action gangs allegedly bought cryptocurrency with illegal funds and converted it to USD for profit. Chinese police claimed the source of the funds are telecom scams and gambling.

In recent months, Chinese authorities have pursued and shut down many similar operations and arrested many people.

Chinese public security investigates crypto pyramid schemes

In June 2021, police arrested around 1,100 people who were allegedly using cryptocurrency to launder funds from telecom fraud. In addition, 170 criminal groups linked to the scheme were eliminated.

The Ministry of Public Security said it was the fifth round of investigation targeting crypto-related money laundering activities.

Yangpu and Shanghai Public Security Bureaus investigated some pyramid schemes allegedly operating with digital assets in March 2022. After investigations, they ended an online scheme that defrauded investors of $16 million.

Police said the operation was the first digital asset pyramid scheme busted in Shanghai’s history. The authorities advised the public to raise awareness about risk prevention and fight against pyramid schemes.

In addition, Shanghai’s Department of Public Economic Investigation said it would continue to track down economic crimes that put citizens’ rights and interests at risk.

For its part, the Chinese government continued to rain bullets on the digital currency industry. The government blocked the Weibo accounts of many digital asset influencers and banned Bitcoin mining activities in the country.

China uncovers major crypto-laundering scam, police arrest Spree
Cryptocurrency market climbs chart | Source: Total Crypto Market Cap on

Actions by these governments against digital assets led banks to freeze cards linked to transactions. Also, Chinese government action in 2020 as reported affected 74% of Bitcoin miners in the country.

Featured image from Pexels, Charts from

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *