China Destroys Gang Using Digital Yuan for Illegal Activities

Chinese government, Xinmi police CBDCWhen he took down the first money laundering gang using his Digital YuanIt wasn’t long before he started celebrating .

Xinmi Public Security and Zhengzhou Public Security Bureau Anti-Fraud Center arrested 11 suspects in Fujian Province for illegally using digital Yuan to launder money. Authorities also found that gang members were using China’s CBDC to launder more money for an overseas fraud group lurking in Cambodia.

The CBDC fraudulent gang was found to be using telecommunication networks in the city of Xinmi. The gang, who sought people to defraud victims of fraud, stated that they had quality problems with online purchases and wanted to make up for their mistake by paying them “three times” the price of the product. The scammers requested verification, including multiple transfer confirmation, from the digital Yuan accounts of the victims who accepted this offer, and this is how the fraud took place.

According to local media reports, Xinmi City Public Security Bureau Criminal Investigation Brigade, found that multiple payments were transferred to a particular electronic wallet, but the transaction mode of the wallet was different from the previous online payment. Those suspected of being guilty are currently being detained by the Xinmi City Public Security Bureau for criminal investigation.

According to experts in China, the “controllable anonymity” feature of China’s CBDC allows for “reasonably anonymous transactions” provided that personal information is protected. In addition, they stated that the main focus of the digital Yuan is to protect financial security by preventing, controlling and combating “money laundering, terrorist financing, tax evasion and other illegal activities”.

Despite all this consideration, it seems that fraudulent activities using the digital Yuan have not been prevented. After these fraudulent activities emerged, significant concerns began to emerge against the digital Yuan. According to information from local officials to local media, the central bank stated that several suspicious industries have been found to engage in illegal activities using the digital Yuan, resulting in the loss of millions of CBDCs.

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