1,100 people arrested in China over alleged crypto fraud


Chinese police busted a network of more than 170 criminal groups as they arrested 1,100 suspects involved in money laundering by buying cryptocurrencies, security officials said in a statement.

The charged individuals are accused of converting illegal proceeds into cryptocurrencies via crypto exchanges, the Ministry of Public Security said, without revealing the amount of money involved.

Illegal proceeds from telephone and Internet scams

As of Wednesday, the police had busted more than 170 criminal groups believed to have used cryptocurrencies to launder illegal proceeds from telephone and Internet scams.

According to the Ministry of Public Security, criminal groups organized personnel to register on various cryptocurrency trading platforms with personal bank cards and information, then purchase and exchange crypto in accordance with their requirements to become “coin farmers” who help them launder money.

The money launderers charged their criminal clients commissions ranging from 1.5% to 5% to convert illegal proceeds into cryptocurrencies via crypto exchanges.

The high illegal income attracted a large number of people to participate and provide services to fraud gangs, helping them transfer and launder money by purchasing and exchanging cryptocurrencies.

The security officials used this as an opportunity to warn the general public that the number of crimes involving the use of cryptocurrencies is on the rise and to increase their awareness of the rule of law and prevention in order to avoid becoming accomplices to fraudsters.

The pressure on crypto keeps intensifying

Meanwhile, the country’s biggest crypto exchanges, Huobi, OKEx, and Binance were blocked from the most popular Chinese internet search engines and social media platforms

Since May this year, Chinese banks and payment firms have been prohibited from providing crypto-related services. 

Even though the government has already banned trading in crypto and keeps actively tightening its restrictions, people are still able to trade in cryptocurrencies such as Bitcoin (BTC) online.

As China keeps intensifying its pressure on crypto, the government is finalizing its central bank digital currency (CBDC) projects, leaving less and less room for competition.  

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.



Source link

Latest articles

Community reacts after Dfinity token ICP loses 80% of its value since May

A little over a month ago, crypto enthusiasts woke to a new project on the top 10 rankings of cryptocurrencies by...

Despite the fear, this on-chain proponent expects EOY Bitcoin price of $300,000

Despite the fear, this on-chain proponent expects EOY Bitcoin price of $300,000 Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR,...

All these Latin American countries want to adopt Bitcoin…and quick

Mexican senators, Eduardo Murat Hinojosa and Indira Kempis, may have a lead in the Bitcoin (BTC) legalization race, but there is...

Dutch economic advisor calls for a Bitcoin ban even as Central America is adopting the asset

An official of the Central Planning Bureau (CPB), an independent, publicly financed policy arm that advises the government of the Netherlands,...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here