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China hits crypto exchange fraud, captures USD 300 million in assets

Monday 13 May 2024 15:12 CET | News

Chinese authorities have dismantled a cryptocurrency exchange fraud system and captured assets worth around USD 300 million.

 

The operation also resulted in the detention of six individuals, and it was led by the Panshi City, Jilin Province Public Security Bureau, targeting a clandestine financial network that used virtual currency for illicit trading, particularly between the Renminbi (RMB) and the Korean Won. 

According to official sources, individuals involved in the scheme exploited the anonymity, decentralisation, and borderless nature of virtual currencies to unlawfully conduct exchange transactions between RMB and Korean Won. 

The investigation revealed that Jin Moudong, in collaboration with an accomplice known as 'Shin' from Jilin province, orchestrated a fraudulent scheme aimed at transferring funds between South Korea and China by manipulating currency exchanges. Suspicious transactions conducted through Shin's underground channels raised red flags for potential involvement in illegal activities. 

Authorities noted significant transaction volumes, frequent fund flows, diverse trading clientele, and fund transaction patterns consistent with underground banking operations associated with the bank accounts linked to the suspects.

 

Chinese authorities have dismantled a cryptocurrency exchange fraud system and captured assets worth around USD 300 million.

 

The aftermath 

The successful apprehension of these individuals has led to the discovery of numerous credit cards and related materials associated with illicit activities, resulting in a significant blow to the underground banking sector according to coinpedia.com. According to the same source, this crackdown underscores China's commitment to combating cryptocurrency-related crimes and safeguarding the integrity of its financial systems. 

Moreover, the decisive actions taken by Chinese authorities serve to reinforce the importance of regulating the rapidly evolving virtual currency landscape and maintaining a secure financial environment.


Source: Link


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Keywords: cryptocurrency exchange, cryptocurrency, regulation, fraud platform
Categories: DeFi & Crypto & Web3
Companies: Government of China
Countries: China
This article is part of category

DeFi & Crypto & Web3

Government of China

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