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According to a report from China’s national broadcasting service, CCTV, 21 individuals have been detained by police in Shanxi Province for their alleged involvement in a USDT money laundering operation. The suspects are charged with the illegal buying and selling of USDT, a stablecoin linked to the US dollar and managed by Tether Limited Inc., a subsidiary of iFinex Inc. located in Hong Kong.
Investigations indicate that the detained individuals, hailing from four provinces, have been acquiring discounted USDT via over-the-counter crypto trading services since October 2021. They are said to have profited by selling the tokens at marked-up prices through social media channels and money laundering services. Over the course of nearly three years, these transactions totaled an impressive 54.8 million USDT (approximately CNY 380 million).
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During the operation, authorities seized 40 mobile phones and confiscated over 1 million yuan (around $138,000) in USDT from the suspects’ accounts. Additionally, more than 200,000 yuan in cash was also taken. Although all 21 suspects have reportedly admitted to the charges, including assisting cybercriminals in converting Chinese yuan to USDT, the investigation is ongoing.
Law enforcement officials informed CCTV that USDT has become a favored option for crypto money launderers due to its ease of transactions and anonymity. It is important to note that China prohibited cryptocurrency issuance in 2017 and completely banned crypto transactions in 2021. Nonetheless, Chinese citizens can still access cryptocurrencies through decentralized finance (DeFi) platforms and proxy internet servers.
The arrests related to the USDT money laundering operation highlight the Chinese government’s ongoing commitment to addressing illicit activities associated with cryptocurrencies. As investigations progress, authorities are expected to enhance regulatory measures to prevent money laundering and safeguard the integrity of the financial system.
The post Chinese Police Uncover $54 Million USDT Money Laundering Scheme. appeared first on BitcoinWorld.
