Chinese authorities from the Horqin Branch of Tongliao Public Security Bureau, Inner Mongolia Autonomous Region, have arrested 63 gang members involved in money laundering activities as the country continues to crack down on crimes related to digital assets.
Despite the ban on digital assets trading, mining, and using the assets for payments of goods and services in China, criminals still use virtual currencies to engage in unlawful activities. But it’s not without leaving a footprint that ultimately gives them up for law enforcement.
Laundered $1.7B Using Crypto
According to local news media, the gang allegedly laundered 12 billion yuan worth around $1.7 billion using cryptocurrencies.
Authorities had earlier in July suspected illegal activity involving the use of bank cards. Upon suspicion, the Public Security Department of the Inner Mongolia Autonomous alerted the police at Horqin Branch, informing them about the dubious transactions.
Police then launched a special task force to look into the matter. During the investigation, the authorities discovered that the gang known as the Shi Mouyuan uses digital assets to help domestic and foreign criminal groups launder crime proceeds.
Opened Offices in Various Cities
In May 2021, the gang used special software to convert illicit funds gathered from online Ponzi schemes, fraudulent activities, and gambling into cryptocurrencies. It then opened blockchain accounts through illegally trained personnel recruited to create various accounts to distribute the funds.
The funds are then converted to RMD before being paid to the owners. The gang received commissions of different proportions for their services.
To effectively carry out their operations without discovery, the gang opened up various offices in different regions and organized teams to conduct the operations discreetly without tipping off the police.
The Arrest
During the investigation, police learned all the relevant details regarding the operation, the head of the organization Zhang Mou, the hidden whereabouts of the fund transfers, background data, and the maintenance personnel.
Police have finally arrested the complete gang members, including its chief coordinator, who fled to Bangkok, Thailand, for safety. Authorities also confiscated 130 million yuan paid to the criminals.
According to the report, the 63 gang members have been taken into custody, and the case is being further investigated.
Meanwhile, the Chinese police also arrested another set of criminals in September (93 people) for laundering around RMD 40 billion worth around $5.6 billion using digital assets.
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Source: https://coinfomania.com/chinese-police-arrest-63-people-over-1-7b-crypto-fraud/