Blockchain & Crypto

China arrests over 100 suspects for money laundering in crypto

The operation in 23 provinces, municipalities and autonomous regions was carried out on June 9

China crypto

China arrests over 100 suspects for money laundering in crypto. Source:

Over 1,100 suspects involved in cryptocurrency fraud have been arrested in China, according to OCCRP. The authorities have also dismantled 170 criminal groups who use digital currencies to enable money laundering and transfer services for telenetwork scams.

The suspects operate the scheme by transferring stolen funds into a coin farmer’s bank account. The farmer then purchases and transfers the digital currency on trading platforms to a given wallet address.

The coin farmer is then given a 1.5%- 5% commission. This attracts the participation of many people, aggravating social harm. The amount of money that has not been stolen is yet to be released.

The Chinese authorities are more concerned about financial control in the country. Individuals who are worried about the devaluation of the Chinese currency might move to virtual currency and destabilize the market.

China banned domestic virtual currencies in 2017. However, over-the-counter exchanges between Bitcoin, Chinese yuan and access to offshore crypto exchanges make it difficult for authorities to effectively regulate digital currencies.

The Chinese government also left mining less unregulated. As of April 2020, 75% of all global Bitcoin mining took place in China. The arrests came after the government’s announcement of clamping down on Bitcoin mining.

Officials in Inner Mongolia, Yunnan, Xinjiang and Qinghai have outlined new regulations against Bitcoin mining.

We’ve reported that Thailand bans NFT trading.


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