Chinese crypto journalist Colin Wu announced that the Public Security Bureau of the Chinese city of Zunyi has cracked down on a giant cryptocurrency laundering ring of 800 million yuan, or about 125 million dollars.
Wu announced on his Twitter account that 100 people were arrested for money laundering.
China’s Zunyi police arrested nearly 100 people using cryptocurrency money laundering with huobi okex and binance, involving a total of 130 million US dollars. https://t.co/T7QhsqOXTR
— Wu Blockchain (@WuBlockchain) October 13, 2021
Law enforcement found that the criminal gang was initially hiring people by posting hiring ads with the appearance of starting a company. He then found that the company had begun to operate on major crypto platforms such as Huobi, Binance, and OKEx.
The gang aimed to evade bank control and police investigation by taking advantage of the secrecy of cryptocurrency exchanges. For money laundering, the gang used methods of frequently changing bank card details used in transactions and making small transfers.
The Zunyi Public Security Bureau, in cooperation with the Ministry of Public Security, established “Task Force 7.22” to combat money laundering in July.
To date, 332 cases of telecommunications fraud have been uncovered across the country, apart from the $125 million cryptocurrency laundering gang.