News - China nabs crypto money laundering gang

By Mike Hesp

China nabs crypto money laundering gang

Scams, crime and fraud

Beijing is cracking down on crypto crime. Now Chinese police have busted another money laundering gang.

Chinese police have arrested six people in connection with a money laundering case in the northeastern province of Jilin. The case involves the transfer of 2.14 billion yuan (US$296 million) in crypto to South Korea.

The "underground crypto bank" was discovered by the Public Security Bureau of the city of Panshi, as reported by the state news agency. Users included Korean shoppers, e-commerce companies and import/export businesses.

Jin and Shen, the last names of two suspects, allegedly ran an illegal money exchange business. They defrauded some of their customers, according to police, who did not disclose the names of the cryptocurrencies used.

Law enforcement officials became aware of the crypto fraud when "large transactions" involving a "large number of customers" appeared regularly in the suspects' bank accounts.

It used Chinese accounts to receive money and for wire transfers. On the other hand, it used crypto OTC providers to exchange between the yuan and the South Korean won.

There is still a strict ban on commercial crypto activity in China, which Beijing sees as a threat to financial stability. The central government also imposes strict currency controls.

Chinese investors are currently facing a slump in the real estate sector and confidence in the renminbi is falling. In this article, find out if, after gold, they will soon be could also jump on Hong Kong Bitcoin ETFs.

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