China Busts $1.9B Money Laundering Ring Using USDT

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As a researcher with a background in financial crime and cryptocurrency investigations, I’ve seen firsthand how complex and evasive these types of criminal networks can be. The recent announcement of the shutdown of this major illegal banking network that utilized Tether (USDT) to bypass China’s capital controls is a concerning development.

On Taylor’s Day, Chinese authorities unveiled the dismantling of a significant illicit financial system, handling over $1.9 billion worth of transactions involving the cryptocurrency Tether (USDT). Individuals from Sichuan and Chongqing provinces apprehended 193 suspects implicated in this operation, which spread across 26 different regions.

I, as a researcher, have uncovered evidence that a criminal organization allegedly employed USDT to circumvent China’s rigorous foreign exchange regulations, enabling them to move ill-gotten gains overseas. The transactions totaled approximately 13.8 billion yuan ($1.9 billion). As part of the ongoing investigation, authorities dismantled two significant operational bases situated in Fujian and Hunan during the year 2023. Simultaneously, they seized assets valued at around 149 million yuan ($20.6 million).

The network is accused of a number of misdeeds by authorities. Among these allegations are instances of financial fraud, work-related crimes, and illicit trafficking of various goods. Particularly noteworthy is their involvement in gold smuggling in Nepal.

This situation underscores the persistent issues China encounters in implementing capital restriction policies. Some individuals have resorted to using cryptocurrencies such as USDT to circumvent these rules. The primary suspects, referred to only by their last names Lin, Weng, and Chen, initiated their unlawful currency exchange operations back in January 2021.

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2024-05-16 12:20