Chinese police neutralize more than 170 groups on suspicion of money laundering

money laundering

Criminals used cryptocurrency to launder money from telephone and internet fraud.

Chinese police officers have arrested more than 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from telephone and internet fraud.

The arrests took place in connection with the strengthening of measures by the Chinese authorities to combat cryptocurrency trade. Last month, three non-regulatory entities that have significant control over the Chinese financial market (the National Internet Finance Association of China, the China Banking Association, and the China Payments and Clearing Association) banned crypto-related financial and payment services, and the State Cabinet Council Ministers of China has pledged to limit the mining and trading of bitcoins.

The police have neutralized more than 170 cybercriminal groups accused of using cryptocurrencies to launder money, the PRC Ministry of Public Security said. Money launderers charged their criminal clients a commission of 1.5% to 5% for converting illicit proceeds into virtual currency through crypto exchanges.

The number of crimes related to the use of virtual currencies is on the rise, authorities said. As cryptocurrencies are anonymous, user-friendly and global in nature, “they are increasingly becoming an important channel for international money laundering.”

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