Cryptocurrency-Related Money Laundering Ring Busted by China, Over 1,100 Arrested

The money launderers charged their criminal clients a commission to convert illegal proceeds into virtual currencies via crypto exchanges.

By Reuters | Updated: 10 June 2021 14:02 IST

Cryptocurrency-Related Money Laundering Ring Busted by China, Over 1,100 Arrested

Last month, three industry bodies banned crypto-related financial and payment services

Highlights

Number of crimes involving the use of virtual currencies is on the rise
Cryptocurrencies have already become a popular means of payment
Nearly 13 percent of gambling sites support the use of virtual currencies

Police in China arrested over 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from telephone and Internet scams in a recent crackdown, the Ministry of Public Security said.

The arrests came as authorities in China step up their crackdown on cryptocurrency trading. Last month, three industry bodies banned crypto-related financial and payment services, and the State Council, China's cabinet, vowed to clamp down on Bitcoin mining and trading. Bitcoin price in India at 12pm IST on June 10 stood at 26.8 lakhs.

The public security ministry said that by Wednesday afternoon police had busted more than 170 criminal groups involved in using cryptocurrencies to launder money.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

The money launderers charged their criminal clients a commission of 1.5 percent to 5 percent to convert illegal proceeds into virtual currencies via crypto exchanges, the ministry said via its official WeChat account.

China's Payment & Clearing Association said on Wednesday that the number of crimes involving the use of virtual currencies is on the rise.

Because cryptocurrencies are anonymous, convenient, and global in nature, "they have increasingly become an important channel for cross-border money laundering," the association said in a statement.

Bitcoin Formally Adopted as Legal Tender in El Salvador

Cryptocurrencies have already become a popular means of payment in illegal gambling activities. Nearly 13 percent of gambling sites support the use of virtual currencies, and blockchain technology has made it more difficult for authorities to track the money, according to the association.

© Thomson Reuters 2021

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.