The post China Sentences Five Over $166 Million in Illegal USDT Currency Conversions ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.

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&nbsp A Chinese court has jailed five defendants for engaging in illegal USDT transactions, citing the need to protect national financial stability. The judgment shocked many within the crypto community as China continues its massive regulatory crackdown on the digital asset market. Meanwhile, Hong Kong remains committed to web3 innovation, attracting new investors, particularly those interested in stablecoins.  Defendants Slapped With Heavy Fines The Beijing court implemented what many within the crypto community described as harsh laws after an alleged illegal transaction. The five men were accused of transferring $166 million overseas, becoming one of the largest crypto-forex cases this year. Court filings show that the defendants deployed renminbi (RMB) to purchase the stablecoins through local channels, such as digital asset exchanges. The tokens were transferred to wallets before the cross-border exchange. Assets were converted to foreign currency before being utilized for international payments. In total, the defendants facilitated approximately 1.2 billion RMB, equivalent to about $166 million, across several transactions. A major prosecution point was that the transaction took place outside regulated banking channels. As a result, the court ruled that it constituted disguised foreign exchange trading and violated China’s Anti-Money Laundering Law and Foreign Exchange Administration Regulations. The court sentenced the defendants to jail time and imposed fines based on their level of involvement.  The lead defendant was sentenced to four years and six months in addition to a fine of 200,000 RMB, equivalent to approximately $28,000. Two other associates involved in the transfer received three-year and nine-month sentences, with fines of 150,000 RMB ($21,000). Meanwhile, the remaining defendants were sentenced to two years and eleven months in prison, as well as a 100,000 RMB ($14,000) fine.  Advertisement

&nbsp This follows a surge in cases linked to China’s cryptocurrency crackdown, with authorities citing increased…

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Filed under: News - @ November 1, 2025 5:27 pm