Chinese police arrest six suspects in $300 million cryptocurrency money laundering case

Last updated: May 13, 2024 02:49 EDT | 2 minutes of reading

The Public Security Bureau of Panshi City, Jilin Province has cracked down on an illegal operation involving underground banks and virtual currencies.

The case, which involved approximately 2.14 billion yuan (about $300 million), led to the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and Korea of the South, according to a report. report from ChinaNews.com.

The suspects exploited the anonymous and decentralized nature of virtual currencies to conduct illegal exchange transactions between the Chinese renminbi (RMB) and the South Korean won.

The program facilitated money laundering activities

This illicit scheme allowed them to facilitate large-scale money laundering activities across borders.

Authorities were informed of the operation through the Economic Investigation Brigade of the Panshi City Public Security Bureau.

During their investigation, they discovered crucial leads indicating the involvement of Jilin resident Jin Moudong and his accomplice, Shen Mou, in conducting foreign exchange operations in China and South Korea.

It was revealed that they lured unsuspecting individuals into fraudulent transactions before returning to China.

After gathering substantial evidence, the police discovered that the bank accounts linked to Jin Moudong and Shen Mou had large transaction volumes.

The accounts exhibited frequent inflows and outflows of funds, a diverse customer base, and transaction patterns consistent with illegal underground banking activities.

Using this information, police formed a task force to further investigate the financial activities, social connections and organizational structure of the criminal gang.

After some analysis, they were able to apprehend Jin Moudong, Shen Mou and their associates.

The law enforcement operation resulted in the seizure of a considerable number of bank cards and tools used in the commission of crimes.

The investigation revealed that the criminal network in question engaged in various illegal activities, such as using national accounts to receive and transfer funds, conducting over-the-counter (OTC) transactions of virtual currencies and settling transactions in Korean won.

Their business was aimed at Korean purchasing agents, cross-border e-commerce platforms and import-export trading companies, providing them with the means to exchange RMB for Korean won and vice versa.

Six people arrested in connection with Austrian crypto fraud

A joint operation involving the national authorities of Austria, Cyprus and the Czech Republic led to the arrest of six people linked to an online scam linked to the sale of rights or tokens for a supposed new cryptocurrency.

Supported by Eurojust and Europol, the coordinated action resulted in the seizure and freezing of assets totaling €2 million.

In another incident, Instagram influencer Jebara Igbara, known as “Jay Mazini,” was sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme.

Most recently, Queensland Police took action against an alleged crypto investment fraud operating on the Gold Coast, resulting in the arrest and indictment of four people.

The investigation, led by the Anti-Money Laundering Unit of the Financial and Cybercrime Group, began in July 2022.

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