Shanghai Police Dismantle Crypto Wallet Fraud Scheme – Coincu

Shanghai’s Pudong Police dismantled a fraudulent crypto wallet operation led by individuals Miao and Wang in May 2025. Suspects used “labor recruitment” to launder money.

This incident underscores the increasing prevalence of tech-driven financial crimes, showing law enforcement’s crucial role in mitigating cryptocurrency fraud.

Shanghai’s Crackdown on 11 Crypto Fraud Suspects

Shanghai authorities arrested 11 suspects involved in a complex fraudulent scheme, operated under the guise of labor recruitment. The fraudulent group led by Miao and Wang arranged for individuals to register virtual currency wallets, later sold to overseas scammers.

The case reveals the changing landscape of digital financial crime. The method involved utilizing registered wallets for international fund movements, presenting new challenges for financial crime prevention.

Law enforcement’s rapid intervention drew attention to the need for enhanced regulatory measures. Officer Li Zhou stated:

“The continuously evolving tactics of scammers highlight the need for integrated law enforcement responses to combat fraud.”

Global Cooperation Against Cross-Border Cryptocurrency Fraud

Did you know? The Pudong police crackdown reflects broader international efforts, with similar scams dismantled in Thailand, emphasizing cooperation against cross-border laundering.

Ethereum’s price stood at $2,482.96, marking a 5.33% 24-hour decrease. Its market cap was reported at $299.76 billion with a trading volume of $22.35 billion. Despite these fluctuations, Ethereum displayed a 2.65% increase over the past week, reflecting ongoing volatility, as per CoinMarketCap.

Coincu researchers highlight the evolving threat of digital fraud using seamless technology. They stress improved KYC procedures and regulatory frameworks to minimize the exploitation of cryptocurrencies in laundering activities.