Hunan Prosecutors in China Break New Money Laundering Chain Using Maotai Liquor Transactions as Cover and Cryptocurrency as Channel

BlockBeats News, March 20th - Recently, a first-instance judgment was announced for a case of concealing and disguising criminal proceeds prosecuted by the People's Procuratorate of Yuetang District, Xiangtan City, Hunan Province, China.

A new money laundering chain, using Maotai liquor transactions as a cover and cryptocurrency as a channel, was completely severed, involving a total amount of more than 6.84 million yuan, with all 8 defendants sentenced.

The gang had clear division of labor and strong concealment.

Chen coordinated with the upstream through overseas encrypted communication software to receive proceeds from telecommunications fraud, contacted a "Merchant" to complete the cryptocurrency exchange and circulation; Xie was responsible for providing tools for the crime and tallying fund details; Huang used Maotai liquor transactions as a facade to cover the trajectory of fund transfer under the guise of a legitimate transaction shell; other members assisted in fund settlement and message transmission.

The gang used fake Maotai liquor transactions as a "whitewashing" process to disguise overseas fraud proceeds as legitimate business income, exchange them into cryptocurrency to return to the upstream, with an 8% illegal commission deducted for each whitewashing transaction. In December 2023, following a victim's report, this dark gray industry chain hidden under the guise of liquor transactions was exposed.
After the case was reported, the People's Procuratorate of Yuetang District intervened in the investigation in advance, guiding the public security organs to comb through nearly 20 million yuan of fund transactions and massive electronic data, achieving a full-chain crackdown and all-element evidence collection. The court ultimately convicted Xie and 7 other accomplices of the crime of concealing and disguising criminal proceeds, sentencing them to 2 to 6 years in prison; Liang, with a less severe involvement, was sentenced to 1 year in prison with a 1-year suspension. (Huasheng Online)