Chinese Police Bust $140 Million Crypto Money Laundering Ring

Author

Jai Pratap

Author

Jai Pratap

About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Author Profile

Share

Copied

Last updated:

November 21, 2023 01:22 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

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.