Chinese Officials Unearth $1.7B Money Laundering in Crypto
The Chinese government was able to seize a total of 130 million Chinese yuan.
The probe was initiated when a local bank saw a dramatic increase in deposits.
Chinese police in the Mongolian city of Tonglio have reported the arrest of 63 persons. For their role in a $1.7 billion cryptocurrency money laundering scheme that used the Tether stablecoin.
According to the official statement released by law enforcement. The probe was initiated when a local bank saw a dramatic increase in deposits totaling over 10 million yuan. Setting off the institution’s anti-money-laundering procedures. After several raids, the Chinese government was able to seize a total of 130 million Chinese yuan, or around $18.6 million.
Gang Started Activities Post Ban on Crypto
According to the Chinese authorities, the crooks recruited members and established the organization using the messaging app Telegram. Due to China’s severe crackdown on cryptocurrency, these transactions probably took place outside of China. The group would pay its members a cut of the profits. Made by changing USDT back into Chinese yuan via money laundering.
In May 2021, the same month an all-out ban on cryptocurrencies was instituted by the Chinese government, along with fines and even prison terms for Chinese people found guilty of utilizing crypto, the gang began their unlawful activity.
The initial justification for the crackdown was to cut down on carbon emissions. The introduction of the Chinese government’s digital yuan money has started. Countries all throughout the world are working on their own versions of the digital dollar, and they include the United States, Australia, China, and Japan.
Tonglio is in Inner Mongolia, and in April 2021, the region’s inexpensive energy cost led to the closure of Bitcoin mining operations in the area. A lot of Bitcoin miners left China and went to nearby Kazakhstan or the United States after the crackdown.
Filed under: Bitcoin - @ December 13, 2022 10:17 am