In a remarkable crackdown on a major cryptocurrency money laundering network, Chinese authorities have apprehended 21 individuals across four provinces, suspected of manipulating Tether (USDT), a popular digital currency. The illicit operation is estimated to have processed an enormous 380 million yuan (approx $55 million) using an over-the-counter (OTC) trading ring.
The illicit operation, initiated in Qinshui County, was first noticed in April when Mouyue Zhao, a local resident's bank account, displayed abnormal financial activities indicating potential money laundering. A more thorough investigation unearthed a sprawling network of criminals operating a USDT OTC trading ring, established since October 2021.
The culprits, involved in buying low-priced USDT and selling it at a profit via WeChat groups, facilitated criminals in effectively laundering their illegal funds. The wide-reaching operations of this network spanned across six cities in Guangxi, Jiangxi, Henan, and Anhui provinces.
A well-coordinated operation involving 50 officers, forming three arresting teams, led to the apprehension of all the 21 suspected culprits. Authorities also seized over 40 mobile phones, 200,000 yuan ($28,000) in cash, and 1 million yuan in USDT ($140,000), further substantiating the allegations.
The suspects, upon interrogation, allegedly confessed to their involvement in utilizing Tether to assist criminal entities in their money laundering activities. CCTV has released footage showing the detained individuals being escorted onto a bus with provided face masks. A photo op with the suspects outside police headquarters marked a significant victory for the police.
Under the stringent Chinese legal system, those convicted of money laundering could face a maximum sentence of up to 10 years.
In my opinion, this event underlines the potential misuse of cryptocurrencies and highlights the need for stringent regulatory oversight. While digital currencies offer numerous benefits, ensuring they are not employed for illicit activities should remain a top priority for law enforcement agencies worldwide.
