Chinese Police Bust $310M Crypto Trading Scheme, Six Arrested

Key takeaways:

• The Panshi City Public Security Bureau in Jilin Province, China, effectively shut down an illicit underground virtual currency money exchange organization.
• The authorities followed up on leads and discovered that the two people’s bank accounts had significant transaction flows.

The Panshi City Public Security Bureau in Jilin Province, China, effectively shut down an illicit underground virtual currency money exchange organization.

ChinaNews reported on May 13 that six individuals who had committed crimes in both China and South Korea had been arrested in connection with a case worth an estimated 2.14 billion yuan (approximately $317 million).

The accused conducted illicit RMB and Korean Won exchange services by taking advantage of the anonymity, decentralization, and transnational nature of virtual currency transactions. 

During their efforts, the Economic Investigation Team of the Panshi City Public Security Bureau found significant leads. Jin and Shen, a resident of Jilin, were discovered to be providing Won exchange services in China and South Korea. They stole money from other people and then made their way back home. 

The authorities followed up on these leads and discovered that the two people’s bank accounts had significant transaction flows. With multiple transaction clients, the periodic inflow and outflow of funds were frequent. The money transfer matched the features of illicit underground money exchange operations. 

The police task force progressively gained a thorough understanding of the gang’s organizational structure and the flow of funds by conducting a comprehensive investigation of Jin and Shen’s bank funds and social relationships, extending the organizational structure and transaction levels. 

The criminal suspects, Jin, Shen, and others, were subsequently detained by the police, who also legitimately confiscated numerous bank cards linked to the case as well as instruments of crime.

The criminal gang, the police discovered, illegally engaged in the foreign exchange business by means of, among other things, Korean Won settlement, OTC buying and selling of virtual currency, and domestic accounts for the receipt and movement of payments. 

They facilitated the exchange of RMB and Korean Won for organizations like import and export trade organizations, cross-border e-commerce, and Korean purchasing agents, among others. Chen, Luo, He, Zheng, and others were apprehended one after the other by the police after a thorough investigation and gathering of evidence.

In the first week of May, Dutch officials detained a person suspected to be involved in the ZKasino online gambling platform scam. The 26-year-old was arrested on April 29 by the Fiscal Information and Investigation Service (FIOD) on suspicion of money laundering, embezzlement, and fraud. According to Dutch officials, the smart contract shows the website never planned to pay back the money.