China Arrests Cybercriminal Group Suspected For Laundering $5.6 Billion

Since the growing crypto issues, high inflation, and happenings like the Terra collapse have shocked the world, law enforcement agencies, including China, have been working actively to protect users and capture criminals. China has busted a new group in a recent crackdown on money launderers.

Cybercriminals and fraudsters from almost every corner of the world have been utilizing cryptocurrencies in their process. Unfortunately, alongside the crypto industry’s growth in recent years, cybercriminals have also ramped up their practices to commit fraud and then launder money abroad to cash it anonymously.

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According to a bureau’s official social media account report, the police force in Hengyang, a city located in the southern Chinese province Hunan, has arrested a group of 93 people in its 100 Day Action campaign across the country.

Criminals are alleged to launder 40 billion yuan ($5.6 billion) through cryptocurrencies. The authority seized 300 million yuan, busted over ten physical websites, and confiscated nearly 100 devices in its crackdown on money laundering actors.

Per the information provided by the department that arrested criminals, bad actors, in order to cash out profits, have been laundering money outside the country since 2018 by converting the illegally gathered funds into digital assets. The scammer group, led by Hong Moumou, originated these funds by running telecommunication and online frauds and may be involved in 300 fraud cases, per the police.

The police heated up its probe against bad actors after Liu Xialong, County Public Security Bureau, became a fraud victim and lost around 7.8 million yuan. 

Flagship coin BTC is currently trading above $19,500. | Source: BTCUSD price chart from TradingView.com
Crypto Adoption Grows In China Despite Restrictions

China has been an anti-crypto regime since the start, and the government does not even allow mining cryptocurrencies in the state. Likely, the People Bank of China (PBoC) banned digital assets in September 2021, with authorities turning hawkish toward the violators. But, crypto adoption in the country continues to increase opposingly. 

As per the recent report of a blockchain research firm, Chainalysis, China stands among the top 10 countries fastly adopting digital currencies despite the restrictions. 

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China’s Yangpu Security Bureau and Shanghai Public Security started a joint probe in March to fight against pyramid schemes gathering funds in virtual currency. Immediately after the investigations, the authorities busted a platform running pyramid schemes, which looted nearly $16 million of victim users. The authorities revealed at the time that it was the first case in the history of Shangai related to a cryptocurrency pyramid scheme and added; 

The general public should raise awareness of risk prevention and consciously resist pyramid schemes. The Shanghai Public Security Economic Investigation Department will also continue to crack down on economic crimes that endanger the legitimate rights and interests of citizens and effectively protect the legitimate rights and interests of consumers.

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