Kinjal

According to Foresight News, Chinese authorities in Shandong's Qingdao have cracked a major underground money exchange case involving 15.8 billion yuan ($2.45 billion) across 17 provinces and municipalities. The suspect, identified as Jin, allegedly used controlled bank accounts to provide illegal currency exchange services. The police discovered that a large amount of Jin's funds were transferred to multiple bank accounts controlled by Li, another suspect in the case.

Upon further investigation, it was revealed that Li was a merchant specializing in illegal trading of virtual currencies. Li helped Jin exchange a large amount of funds into cryptocurrencies such as Tether through an overseas virtual currency trading platform. After obtaining solid evidence, the investigators took action and seized virtual currencies equivalent to about 2 million yuan ($310,000) in Tether and Litecoin at the scene. The case has now been transferred to the prosecutor's office for review and prosecution.

The State Administration of Foreign Exchange (SAFE) stated that, according to national regulations, virtual currencies do not have the same legal status as legal tender in China. Conducting business activities related to virtual currencies is considered illegal financial activity. Additionally, buying and selling foreign exchange must be conducted at designated locations in China; otherwise, it is considered illegal foreign exchange trading, and severe cases may result in criminal liability.