Chinese Police Bust $140 Million Crypto Money Laundering Ring
China’s law enforcement agency in Wuhan arrested 27 individuals involved in a sophisticated crypto money laundering and crime operation involving 1 billion yuan, approximately $140 million.
The arrests were made in provinces and cities such as Deyang in Sichuan, Changchun in Jilin, and Dongguan in Guangdong, local media outlets reported.
Chinese Police Bust Massive Crypto Money Laundering Gang
The operation, which resulted in the elimination of the money laundering gang, followed a meticulous three-month investigation that began on August 6 when the police received a report of a company being defrauded of RMB 350,000.
Swift action was taken as the center promptly arranged an emergency stop payment of the defrauded funds and launched a special team to investigate the case.
The investigation led to the identification of a key suspect, Li, whose bank card was used to transfer the defrauded funds.
Cooperation between the different law enforcement agencies allowed the police to track and apprehend Li, revealing his involvement in the broader online money laundering network.
Earlier this year, authorities in China arrested 21 individuals in a $54 million USDT money laundering operation.
Gang Handled Hundreds of Bank Cards
Further analysis uncovered the intricate workings of the money laundering gang, orchestrated by the principal culprit, Xiang (pseudonym), and his core members, primarily active in Sichuan Province.
The gang operated with clear hierarchies and distinct roles among its members, handling hundreds of bank cards and over 300 related cases.
Taking swift and decisive action this month, the Wuchang police established a special arrest team, dispatching seven teams to key locations in China associated with the gang, including Deyang, Sichuan, Changchun, Jilin, Dongguan, Guangdong.
The operation resulted in the apprehension of 27 individuals linked to the network.
The investigation revealed that since April of this year, the principal suspect, Xiang Mou, utilized the “Airplane” software to connect with his “upline” and coordinate gang members in using stolen funds to purchase crypto online.
The virtual currency was then transferred to the upline account, facilitating money laundering for electronic fraud gangs and earning commissions.