Chinese Police Bust Massive Money Laundering Gang That Used Tether to Launder $1.7 Billion
Chinese authorities arrested numerous people accused of using the tether stablecoin to launder nearly $2 billion in illicit funds procured from ponzi schemes, gambling, and other illegal activities.
As per a statement from the Tongliao Public Security Bureau serving the region of eastern Inner Mongolia, Chinese police have arrested 63 individuals for using cryptocurrencies to launder as much as $1.7 billion (12 billion Chinese yuan). Allegedly, the gang has been converting proceeds obtained from pyramid schemes, gambling and fraud into the tether stablecoin since May 2021. Since the beginning of the investigation— which started in July 2022, authorities seized nearly 130 million yuan worth of illegal cash.
The police accused the gang of using Telegram— which is prohibited in China— to recruit individuals that would then create anonymous blockchain accounts in exchange for a commission. Authorities were tipped off about the illegal operation after an account used by one of the accused was flagged for making monthly cash deposits in excess of 10 million yuan.
The mining and trading of cryptocurrencies is banned in Mongolia, and local police have thus far destroyed over 10 money laundering dens linked to the gang.
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