Chinese Authorities Dismantle $1.9 Billion Crypto Underground Banking Ring
Wednesday, 15 May 2024, 11:57
Chinese Police Dismantle $1.9 Billion Crypto Underground Banking Ring
Chinese police have dismantled a massive underground banking network involved in illegal crypto transactions, arresting 193 suspects across major Chinese cities. These individuals were found to be using Tether (USDT) for illicit transactions, totaling around $1.9 billion (13.8 billion yuan).
Crackdown on Illegal Crypto Activities
- The investigation began in November 2022, targeting suspicious underground banking operations in Chengdu's Longquanyi District.
- A specialized task force including experts from various police departments was formed to catch unauthorized foreign exchange settlements.
Coordinated Raids and Arrests
- On June 1, 2023, following Ministry of Public Security directives, coordinated raids were conducted across major cities like Shanghai and Shenzhen.
- Key syndicate figures and 25 others were apprehended, seizing bank cards and digital payment instruments associated with criminal activities.
Further investigations revealed the syndicate's exploitation of import-export businesses for illegal activities, using USDT to bypass official foreign exchange channels.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.