Chinese Police Crack Down on Underground Money Laundering Scheme Involving Cryptocurrency

According to Foresight News, Chinese police in Qingdao, Shandong province, have cracked a major underground money laundering case involving 158 billion yuan ($24.8 billion) and spanning 17 provinces and municipalities. The authorities have arrested individuals involved in the illegal trading of cryptocurrencies. In November 2022, Qingdao police discovered over a thousand suspicious accounts linked to a person named Jin, with daily transactions averaging over 30 million yuan and a total transaction amount exceeding 20 billion yuan. These accounts exhibited unusual characteristics, such as large sums of money being moved in high-frequency operations and rapid inflows and outflows. A textile company employee named Li, who was found to have controlled third-party bank cards with a total transaction amount of over 50 billion yuan, was also investigated. This amount was inconsistent with Li's identity as an ordinary employee. Upon further investigation, it was revealed that Li was also involved in the illegal trading of cryptocurrencies. Li used an overseas cryptocurrency trading platform to help Jin convert large amounts of funds into cryptocurrencies such as Tether and Litecoin. After obtaining solid evidence, the police took action and seized approximately 2 million yuan worth of Tether, Litecoin, and other cryptocurrencies at the scene. The case has now been transferred to the prosecutor's office for review and prosecution.