China Disrupts $5.6 Billion Cryptocurrency Laundering Plan

China has successfully busted a 40 billion yuan ($5.6 billion) cryptocurrency laundering ring. Over the past several months, Chinese authorities have thwarted similar schemes, arresting thousands of people.

According to a local report, the Chinese authorities detained 93 people in the city of Hengyang on suspicion of utilizing digital assets to launder about $5.6 billion. In an operation known as the “Hundred-day Action“, the authorities searched ten actual locations, seized more than 100 electronic devices, and froze roughly $42 million.

The group allegedly used illicit cash to buy digital assets, then changed them into US dollars to resell them for profit. The money, according to the police, was primarily obtained through telephone and gaming frauds.

The growth of bitcoin activities is not possible in China. The domestic government has repeatedly stated that it opposes the industry and has thought about taking severe action. When the People’s Bank of China (PBoC) forbade any transactions involving digital assets on domestic land in September 2021, the unfavorable attitude reached its height.

In June of last year, Chinese police arrested 1,100 individuals for allegedly using digital currency to launder money for telecom network fraud activities. In addition, authorities arrested 170 criminal organizations in connection with the scheme.

In March 2022, the Shanghai Public Security Bureau and the Yangpu Public Security Bureau conducted a joint investigation into pyramid schemes using digital assets. As a result, they have halted an online platform that has attracted investors close to $16 million during its existence.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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