China cracks down on cryptocurrency money laundering case

 

China cracks down on

 cryptocurrency money laundering case

Strict action has been taken by the Chinese authorities to combat a gang

 suspected of using digital yuan portfolios (CBDC) to launder illicit funds.

Chinese authorities have been able to dismantle a criminal gang suspected of using

 the Digital Yuan Governor to regulate illegal money laundering over the past year.

The digital yuan was launched in China as an experiment in

 the city of Shenzhen in October 2020

The project showed significant financial activity with a transaction volume of

 1.8 trillion yuan (US $249 billion) in June. Criminal activities 

are likely to have contributed to this rise.

China Breakup Digital 

Money Laundering Ring in Yuan

Seven people were arrested and detained by the Shaoxing Public Security Office

on fraud charges, after a report was filed by a bank employee in September.

The bank employee provided a police alert about a very abnormal transaction

 activity on the merchant's e-CNY portfolio. The police immediately responded

 by setting up an investigation team.

Investigations led to Yuan Mo's arrest in Yuicheng, Shawsheng

Chile and Huchu, all of whom were seized and various

 items were seized in their possession.

Including computers

24,000 yuan of stolen money, and 500,000

 yuan suspected of involvement in money laundering operations.

After further arrests and investigations

the police discovered a complex network of money

 laundering activities extending to gangs abroad.

The criminal gang reportedly exploited the high privacy of renminbi's 

digital payment transactions to avoid investigation and money-laundering.

Usually

the gang travels to areas such as Shaoxing

 Jinhua

 Hangzhou and Jiaxing,

It cooperates with cigarette hotel owners to accept suspicious payments 

from their digital yuan wallets for a commission of 8% of each thousand yuan.

After the transaction is approved

 the money is sent to the hotel operator

 and immediately withdrawn before members move elsewhere to 

avoid investigation and prosecution by public authorities or security agencies.

Although no gang members appeared in court, the report confirmed that

 the suspects were "criminally detained in accordance with the law"

 after the completion of the police investigation.