China Discovers Major Crypto Laundering Scam, Police On Arrest Spree
The Chinese government has never promoted crypto actions since the sprouting of the industry. The People’s Bank of China assumed further prosecutions against the digital enterprise and prohibited all local digital assets undertakings.
Since the crypto prohibitions in China, the state has never stopped sounding a reminder that no digital action can develop in the country. Nevertheless, citizens of China are still very enthusiastic about digital assets regardless of the government’s antagonistic stance.
A survey from Chainalysis reported that China is among the transnational top 10 biggest crypto adopters. Moreover, from current reports, some crypto undertakings still happen secretly without the government’s awareness.
Chinese Authorities Freeze $42 Million
Previously, local Chinese media reported the detention of 93 people pertained to crypto-related money laundering.
Based on the report, law enforcement agents in Hengyang city found an illegal group that laundered 40 billion yuan utilizing digital assets. The illicit fund is roughly $5.6 billion if modified to the US dollar.
Furthermore, the police ransack ten sites, apprehended 93 suspects, and seized more than 100 pieces of electronic equipment. In addition, the government froze about $42 million in an illicit undertaking dubbed the Hundred-day Action.
In the report, parties of the Hundred-day Activity allegedly purchased cryptocurrency with unlawful funds and modified it to USD for profit. The Chinese police asserted the origin of the cash accounts is telecom scams and gambling.
Reportedly, Chinese authorities have scoured and ceased many identical operations and apprehended many people.
Public Security Investigates Crypto Pyramid Schemes
In June 2021, police apprehended about 1,100 individuals who allegedly used cryptocurrency to launder funds from telecom extortion. Additionally, 170 criminal factions correlated to the scheme were eliminated.
The Yangpu and Shanghai Public Security Bureau scrutinized some pyramid schemes allegedly managing digital assets in March 2022. After the examinations, they discontinued an online scheme that defrauded $16 million from investors
The police said the undertaking was the earliest DS pyramid scheme it broke down in the annals of Shanghai. Authorities urged the populace to put forward risk prevention understanding and combat pyramid schemes.
