Sat. Nov 26th, 2022
China Arrests 1,100 People Allegedly Using Cryptocurrency to Launder Criminal Proceeds

China Arrests 1,100 People Allegedly Using Cryptocurrency to Launder Criminal Proceeds

 

Crackdown on Telecom Fraud Using Cryptocurrency for Money Laundering

The People’s Republic of China’s Ministry of Public Security said on Wednesday that the fifth round of the “Broken Card” operation had been completed.

The ministry stated that it has “severely cracked down on illegal and criminal groups that provide virtual currency money laundering services for telecom fraud,” and that it has “severely cracked down on illegal and criminal groups that provide virtual currency money laundering services for telecom fraud.”

More than 170 criminal gangs have been eliminated, more than 1,100 criminal suspects have been arrested.

According to the release, the criminal groups used cryptocurrency to move the monies involved in the case.

According to police investigations, these criminal organizations frequently collaborate with “coin farmers,” who assist the fraudsters in laundering money. These coin farmers would sign up for various cryptocurrency trading sites and purchase and sell cryptocurrencies according to the gangs’ wishes. The following is an excerpt from the announcement:

‘Coin farmers’ can earn ‘commissions’ ranging from 1.5 percent to 5 percent after completing the money laundering procedure. The significant amount of money made illegally draws a big number of individuals, generating considerable societal impact.

“To date, the ‘broken card’ operation has removed 15,000 unlawful criminal gangs,” the release continues. 311,000 suspects were apprehended… 18,000 illicit industrial outlets and entities were under our control.”

After the State Council, China’s cabinet, convened an inter-ministerial joint conference to crack down on a new sort of unlawful telecom network fraud on Oct. 10 last year, the Broken Card operation was initiated. Mobile phone cards and bank cards are the most commonly impacted cards.

According to China’s Payment & Clearing Association, the number of crypto-related crimes is on the rise. Cryptocurrencies have “become an increasingly crucial avenue for cross-border money laundering,” according to the group, which also noted that they have already become a popular method of payment in illegal gaming.According to the group, approximately 13% of gaming sites enable the usage of cryptocurrency, making monitoring more difficult.

Chinese authorities have lately ramped up their efforts to combat illegal cryptocurrency transactions. Three industry groups have prohibited crypto-related financial and payment services, in addition to reaffirming a restriction imposed some years ago.The State Council has also said that bitcoin mining will be prohibited. According to Bitcoin.com News, China’s Qinghai province has ordered bitcoin mining businesses to cease operations.

 

  1. Tim Wu, a White House technology advisor, has at least $1 million in bitcoin.

  2. Thousands of MIT students received free bitcoin in 2014, and those who held it for six years saw gains of 13,000 percent.

  3. This year, the G7 Finance Ministers will publish Common Rules for State-Issued Digital Currencies.

  4. Localbitcoins Expands Payment Options to Include Bitcoin Cash and Other Cryptocurrencies

 

 

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