LIVE
China Dismantles Massive $2 Billion USDT Money Laundering Operation. ๐จ๐ณ๐ฒ
In a significant crackdown on financial crime, Chinese authorities have dismantled a money laundering operation involving nearly $2 billion worth of tether (USDT). This extensive operation resulted in the arrest of 193 suspects across 26 provinces, highlighting the scale and reach of the criminal network.
The gang was deeply involved in evading China's stringent foreign exchange regulations, facilitating illegal fund transfers overseas. Notably, two major hubs in Fujian and Hunan were destroyed last year, marking a critical blow to the syndicate's operations. Authorities managed to freeze assets worth 149 million yuan ($20.6 million), disrupting their financial channels.
The network's activities were diverse and severe, ranging from financial fraud and job-related crimes to smuggling and drug management obstruction. They were also implicated in complex schemes involving credit card fraud and export tax refund fraud. One of their operations included paying gold smugglers to transport gold from Nepal to Tibet, smuggling cash, musk, and yarsagumba back into China.
This case underscores the growing use of cryptocurrencies like USDT in organized crime, particularly in Southeast Asia. Reports from the UN have highlighted USDT's significant role in money laundering activities, often facilitated through online gambling platforms, many of which operate illegally. The use of the TRON blockchain for these transactions has become increasingly common, reflecting a broader trend in digital financial crime.
