Chinese Police seized gang members and arrested them for their alleged efforts towards laundering money as much as $1.7 billion (12 billion Chinese yuan) converted into cryptocurrency. The gang's operations were still ongoing despite the strict crackdown of Beijing regarding crypto trading in the country back in 2021, with the gang finally caught by authorities now.
Authorities claimed that these gang members were engaged in illegal activities as their main source of funds, one that they tried to launder via cryptocurrency.
Chinese Gang Laundered $1.7B to Cryptocurrency, Caught by Police
The Public Security Bureau of Inner Mongolia's Tongliao City said in a statement that it seized 63 gang members involved in laundering money via cryptocurrency, as part of the group's illicit earnings. According to the officials, the gang started its money laundering activities and was able to process 12 billion Chinese yuan into $1.7 billion Tether in crypto.
It is known that the USDT, a.k.a. Tether, has a 1:1 ratio in US dollars to the cryptocurrency coin. This proved to be a significant way for the gang to transfer and move its money, which they have been doing since May 2021.
According to CNBC, the gang was able to generate this massive amount via criminal behavior and actions including pyramid schemes, fraud, and gambling.
Read Also : China's New Law Targets Deep Synthesis Tech and Deepfakes to Counter Online Misinformation
Cryptocurrency in China is a Massive No for its Residents
After transferring their money to the online platform, the gang members attempted to convert it back to Chinese yuan, in different crypto accounts.
It is still a massive crime to trade cryptocurrency in China, and the country has massive regulations against its crypto mining and trading in the country.
China's Massive Crypto Ban
China's cryptocurrency ban in the country is extensive, and it disapproves of the new digital currencies that the rest of the world is trying to accept and welcome to their countries. Back in early 2021, there was news regarding many Chinese citizens trying to make their way to Texas to continue their livelihood in the state that is more accepting of cryptocurrency.
The massive ban in China for cryptocurrency affected a significant part of its citizen's jobs, especially as the world's crypto mining sees a notable operation in the Chinese region.
One of the massive effects of China's extensive cryptocurrency ban is the market crash earlier this year, and it caused top coins to plummet due to its people no longer having permission to mine the coins. Coins including Ethereum, Dogecoin, Bitcoin, and US Tether saw a massive crash on different platforms that greatly affected them in the long run.
With China's crypto ban for the country, anyone seen touching, trading, and mining digital currency will immediately brand as criminals and face prosecution. This crypto laundering will add to the gang's list of charges which also involves running scams and fraudulent transactions amongst its victims, earning significant amounts in the process.
Related Article : Japan, Netherlands Join US in Chip War Against China
