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An individual known only as “Mr. Chen” has been found guilty by the Fuzhou Mawei People’s Procuratorate on charges of “offense of concealment and concealment of crime” for acquiring 94,988 Chinese yuan ($13,067) worth of Tether (USDT) on behalf of an acquaintance.
As reported by local news outlets, Mr. Chen was approached by Mr. Lin, his acquaintance, around February 2022 to share his bank card information on the social media platform WeChat. Following this, Mr. Chen received seven transfers in fiat yuan from Mr. Lin, which he utilized to buy USDT.
The stablecoins were subsequently returned to Mr. Lin. Throughout this transaction, Mr. Chen earned a total commission of 147.1 yuan ($20.26). In a statement regarding the case, the Fuzhou Mawei People’s Procuratorate remarked:
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“Con artists utilize virtual currency to transfer and launder illicit funds. This type of online money laundering under the guise of purchasing virtual currency, while being aware that others exploit the information network to commit crimes and providing them with assistance, constitutes a legal violation.”
The Fuzhou Mawei People’s Procuratorate later sentenced Mr. Chen to nine months of imprisonment, suspended for one year, along with a fine of 5,000 yuan ($689).
Since the start of the year, Chinese authorities have initiated a stringent crackdown on cryptocurrency operations within the nation. Last week, Jinfeng Sun, political commissar of the Network Security Bureau, indicated that technologies such as blockchain and artificial intelligence have been implicated in a series of incidents related to “fraud and data theft.”
Nonetheless, the crackdown seems to be extensive and not solely focused on crime prevention. In July, the $1.5 billion Multichain protocol was dismantled by Chinese law enforcement following the arrest of its CEO. Since that time, users’ bridged assets, along with corporate funds, have been inexplicably converted into privacy coins and stablecoins and transferred out of the protocol. No rationale has been provided for this action.
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