In a significant crackdown on cryptocurrency crime, Chinese police have successfully dismantled a $1.9 billion illegal banking ring that was heavily involved in unauthorized crypto transactions. The operation, which centered around the illegal use of Tether (USDT), resulted in the arrest of 193 individuals across various cities including Chengdu, Shanghai, and Shenzhen.
This illegal network facilitated unauthorized foreign exchange settlements, bypassing national financial regulations. It exploited a legitimate import and export business to launder money and provide foreign exchange services outside the legal banking system. This operation was part of a larger trend where criminal syndicates use digital currencies to obscure the movement of illicit funds across borders.
The raids were the culmination of a detailed investigation that began in November 2022 when suspicious activities were first noted by local authorities in Chengdu. The collaborative effort involved multiple departments, including economic investigation, cybersecurity, and legal affairs, under the guidance of the Ministry of Public Security.
The crackdown highlights China's ongoing efforts to combat financial crimes that involve cryptocurrencies. This case is part of a broader push to ensure financial stability and reinforce the legal boundaries surrounding the use of digital currencies in the country.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
