Chinese Shenyang Police Bust Cross-border Illegal Forex Case, Involving Bitcoin, Tether, and Other Cryptocurrencies in Wash Trading Transaction

BlockBeats News, December 20th. According to Xinhua News Agency, a Chinese national named Tong triggered high attention from the Chinese police due to a tip-off from the U.S. side regarding his involvement in money laundering for drug traffickers. To uncover the truth, the Ministry of Public Security deployed the Liaoning Provincial Public Security Department to conduct verification work. Tong and another individual, Chen, who attempted to flee the country were apprehended on the spot in Wuhan, Hubei Province. Both individuals were sentenced to imprisonment and fined in September this year.

It is reported that Tong mainly used a "hawala" method to conduct illegal foreign exchange transactions totaling more than 16 million yuan through domestic bank cards, and in some transactions instructed domestic individuals to purchase virtual currencies such as Bitcoin and Tether and resell them to overseas individuals in exchange for U.S. dollars in cash. During the investigation, the police also discovered some criminals evading U.S. supervision in large cash withdrawals and virtual currency transactions. Currently, feedback has been provided to the U.S. through the China-U.S. anti-money laundering cooperation channel, and a consensus has been reached to enhance law enforcement cooperation in the field of anti-money laundering.