According to a bulletin released by the court, two defendants with the surnames Jiang and Zheng played a key role in recruiting 19 other individuals, commonly known as “money mules.” The court documents revealed that the group utilized a decentralized wallet called Bitpie, which functions similarly to Metamask, to transfer the USDT">USDT to local peer-to-peer (P2P) exchanges on virtual currency platforms. They would then convert the USDT into RMB.
To withdraw the fiat currency, the members of the group employed various tactics across different cities in China. They would provide false reasons for the transfers, such as project payments or workers’ wages. Jiang, in particular, managed to make a profit of approximately 22.62 million RMB ($3 million) through his involvement in the scheme.
After careful consideration of the evidence, the court found all the defendants guilty of disguising and concealing criminal proceeds. They received different prison sentence lengths and fines as punishment for their actions. Jiang, the primary orchestrator, was sentenced to six years and three months in prison and was fined 500,000 RMB. Similarly, Zheng, the co-conspirator, also received a six-year prison sentence and a fine equivalent to Jiang’s.
This case demonstrates China’s ongoing efforts to crack down on financial crimes and illegal activities involving cryptocurrency. The harsh sentences handed down show authorities are serious about punishing fraud, money laundering, and other illicit crypto activities. They aim to protect investors and maintain integrity in the financial system through stricter regulations and enforcement against the misuse of digital assets. The prosecution makes clear that those engaged in illegal crypto operations will face consequences as authorities continue working to foster a trusted environment for blockchain technology.
As cases like these continue to emerge, it is crucial for both users and service providers within the crypto industry to prioritize compliance, adhere to regulatory frameworks, and work together with authorities to combat financial crimes. This collaborative effort will help ensure the long-term viability and legitimacy of cryptocurrencies in the global financial landscape.
