Sichuan Public Security Busts 3.9 Billion Yuan Forex Scheme – Coincu

Public Security authorities in Sichuan announced the bust of a large-scale illegal forex operation on May 15. The operation involved a total amount exceeding 3.9 billion yuan and resulted in 21 arrests.

The case demonstrates China’s ongoing commitment to tackling cross-border currency violations amid increased regulatory scrutiny.

Crypto’s Role in Cross-Border Financial Crimes

Sichuan Public Security revealed a significant crackdown involving the arrest of 21 individuals since August 2021. The suspects had established technology consulting firms in Chengdu, utilizing social media to attract clients and conducting illegal foreign currency trades. The operation involved using overseas gift card cashing and virtual currency counter-trading, accumulating over 3.9 billion yuan.

Community reaction remains muted, as major crypto influencers and blockchain projects tend to tread lightly concerning sensitive enforcement actions. China’s regulatory environment and stringent internet oversight contribute to the lack of public commentary from key figures.

“We collaborated with the State Administration of Foreign Exchange to publish example cases and sternly crack down on illegal activities related to foreign exchange,” said the Sichuan Public Security Bureau, emphasizing the seriousness of the crackdown. The use of virtual currencies was a critical factor, underscoring the complexities of cross-border currency activities. Government authorities remain vigilant against such illicit financial flows.

Market Data Overview

Did you know? The Sichuan case illustrates the ongoing use of crypto in China’s cross-border financial crimes. Historically, similar schemes in Shanghai mobilized over $260 million using virtual currencies.

Bitcoin (BTC) demonstrates resilience amidst regulatory pressures, maintaining a market cap of 2.07 trillion. Trading volume reached 48.73 billion, with minimal fluctuations over 24-hour and 7-day periods, as reported by CoinMarketCap. BTC shows a 22.11% increase over 30 days. Data accuracy as of 17:21 UTC, May 16, 2025.

The Coincu research team notes that as China continues strengthening its regulatory framework for financial crimes, there may be enhanced adoption of traceability solutions in blockchain technology. This could potentially stabilize unauthorized currency activities.