Chinese Police Bust USD5.6 Billion Crypto Money-Laundering Scam
Dou Shicong
DATE:  Sep 27 2022
/ SOURCE:  Yicai
Chinese Police Bust USD5.6 Billion Crypto Money-Laundering Scam Chinese Police Bust USD5.6 Billion Crypto Money-Laundering Scam

(Yicai Global) Sept. 27 -- Police in China’s central Hunan province have cracked a money laundering racket involving CNY40 billion (USD5.6 billion) of cryptocurrencies after a year-long investigation.

The gang leader, surnamed Hong, and 92 suspects are under arrest, police in Hengyang county said on their WeChat account yesterday. Some CNY300 million (USD41.9 million) in assets have been frozen and CNY7.8 million of financial losses returned to the victims. The case is ongoing.

The gang were active in many cities from 2018, the report said. They converted funds that were illegally obtained from fraudulent deals and gambling into digital currencies and then changed them into US dollars.

China banned all cryptocurrency transactions and initial coin offerings in 2017 to prevent illicit fundraising and money laundering. E-coin mining was also outlawed last year to combat huge energy wastage.

Last year, Chinese police uncovered 259 cases of crypto money-laundering and seized over CNY11 billion (USD1.5 billion) in virtual money, according to the Ministry of Public Security.

Editor: Kim Taylor

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Keywords:   Virtual Currency,Launder Money