ThecoinrepublicCrypto$5.6 Billion Crypto Money-Laundering Scheme Cracked Down








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$5.6 Billion Crypto Money-Laundering Scheme Cracked Down

  • Hengyang police arrested 93 individuals for using cryptocurrencies
  • The authorities raided 10 physical sites
  • Authorities froze around $42 million in an operation

A criminal group that used cryptocurrencies to launder 40 billion yuan (approximately $5.6 billion) was reportedly busted by Hengyang, a city in the southern Chinese province of Hunan.

Thousands of people have been detained as a result of China’s authorities stopping a number of similar schemes over the past few months.

The “Hundred-Day Action”

According to local media, 93 people were detained by Chinese authorities in the city of Hengyang on suspicion of laundering approximately $5.6 billion using digital assets.

In an operation known as the “Hundred-Day Action,” the authorities raided ten physical locations, seized more than 100 electronic devices, and froze approximately $42 million.

It is alleged that the gang used illegal funds to acquire digital assets and then exchanged those assets for American dollars in order to conceal profits. Gambling and telecom fraud, the police claimed, were the main sources of the funds.

China is not a good place for cryptocurrency businesses to flourish. The domestic government has contemplated harsh measures and made it abundantly clear that it does not support the industry over the years.

When the People’s Bank of China (PBoC) imposed a ban on all local operations involving digital assets in September 2021, the negative attitude reached its highest point.

The most populous nation in the world continues to be interested in the asset class despite the restrictions. China was estimated to be among the top 10 global leaders in cryptocurrency adoption in a recent Chainalysis study.

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Previous Raids 

In June of last year, 1,100 people were apprehended by Chinese authorities for allegedly using digital currencies to conceal funds for fraudulent activities involving telecommunications networks. In addition, 170 criminal organizations associated with the scheme were detained by the authorities.

A joint investigation into digital asset-based pyramid schemes was carried out in March 2022 by the Yangpu Public Security Bureau and the Shanghai Public Security Bureau. As a consequence of this, they stopped an online platform that conned investors out of nearly $16 million throughout its existence.

The operation was highlighted by the police, who claimed that it was the first cryptocurrency pyramid scheme in Shanghai’s history to be exposed.


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