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China crackdowns on cryptocurrency fraud, over 1100 detained

Thursday 17 June 2021 09:29 CET | News

China has rounded up more than 1,100 suspects and dismantled over 170 criminal groups believed to have used cryptocurrency to provide money transfer and laundering services for telenetwork scams.

On 9 June 2021, police carried out the simultaneous operations in 23 provinces, autonomous regions, and municipalities to uncover the scams, according to a press release published by the Ministry of Public Security. Fraudulent networks usually transferred stolen money into the bank account of a ‘coin farmer’, who then would purchase and transfer virtual currency on a trading platform to a designated wallet address.

According to the statement, ‘coin farmers’ would usually get between 1.5 and 5% from the transaction, attracting many people to participate. The press release did not indicate how much money had been transacted via cryptocurrencies in the alleged cases of fraud, according to OOCRP.


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Keywords: cryptocurrency, cryptocurrency exchange, online fraud, virtual asset
Categories: DeFi & Crypto & Web3
Companies:
Countries: China
This article is part of category

DeFi & Crypto & Web3