Thursday, December 8, 2022

China Police Arrest 93 Suspects Over Crypto-Related Money Laundering Crimes

The Hengyang County Public Security Bureau in China revealed that 93 suspects have successfully been arrested in connection to money laundering crimes. According to the Authorities in China’s Hunan province, over RMB 40 billion ($5.6 billion) was laundered using cryptocurrencies. This move is part of the Chinese government’s strategy to clamp down on crypto crimes in the country.

Not only has China ruled against crypto crimes, but it has also placed a ban on crypto mining and trading. The authorities also placed a ban on the use of cryptocurrencies for payment of products and services. The announcement about the arrest was made at a press conference titled “Hundred Days Action” on public security crackdown and rectification last Friday. 

In addition to the 93 persons who were arrested, the authorities also busted over ten sites that the criminals use as their hideouts. Also, the police seized 100 mobile phones and computers and froze about 300 million yuan linked to the case. Alongside, 7.8 million yuan worth of assets was also confiscated. 

China Clamps Down on Crypto Crimes

Invariably, the money laundering scheme comes as part of the over 300 cases which have been reported so far. Notably, this scheme by the scam group led by an individual identified as Hong Moumou has been going on for over 4 years. 

They have engaged cryptocurrencies in laundering funds gotten from fraudulent activities and gambling. Allegedly, these suspects converted their loot to cryptocurrencies and then traded the crypto for U.S. dollars to launder their profits. Most of their loot was gotten for telecom scams and gambling.

In February, the China Banking Insurance Regulatory Commission (CBIRC) issued a warning to the public against the use of the metaverse. According to CBIRC, it was a tool for carrying out illicit activities and crimes. The regulator suspected that many companies were using blockchain technology to disguise their illicit, fraudulent and criminal activities.

These official warnings mentioned a few strategies which it believed these companies explored to carry out their schemes. Firstly, they fabricate a false metaverse investment project with a well-packaged name games production and artificial intelligence. Secondly, they promise to give huge profits to investors for games played in a short while.

Customers who fall victim to their schemes are exploited and their funds are carted away.

 

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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