The $2.2 billion “underground bank” that China collapsed was using cryptocurrency exchanges abroad.
According to local sources, Chinese police have busted a network that used cryptocurrencies to bypass forex restrictions in the country.
Xu Xiao, one of the officials of the State Foreign Exchange Clearing Administration of China, “Underground banks buy virtual money and then sell it through trading platforms abroad to buy the foreign currency they need.” said.
As a result of the operation, more than a thousand bank accounts 2.2 billion dollars worth of money was transferred detected. Officials found a currency consisting of Tether (USDT), Litecoin (LTC) and several other cryptocurrencies at the scene. Cryptocurrency worth 28 thousand dollars (200 thousand yuan) confiscated.
According to the law in China, citizens are not allowed to work annually unless they have special permission. Foreign exchange transaction worth more than 50 thousand dollars can’t do it.