Chinese police have dismantled a massive cryptocurrency money laundering operation involving over 1 billion yuan ($140 million) after a complex 3-month investigation.
The crackdown began on August 6th when authorities in Wuhan received a fraud report from a company that had 350,000 yuan stolen from them. Police swiftly halted the transfer of funds and assembled a special investigative team. They identified a key suspect named Li whose bank card was used in the fraud, providing the first clues into the expansive criminal network.
Further cooperation between law enforcement agencies helped uncover the inner workings of the money laundering gang run by ringleader Xiang. Operating primarily out of Sichuan Province, the organization had clear hierarchies and split roles among its members. In total, they handled hundreds of bank cards and over 300 related fraud cases demonstrating the vast scale of their operation.
Police have determined the group has been active since April 2023. Their modus operandi was to use stolen money to purchase cryptocurrencies online which were then transferred to upper-level gang members. This effectively laundered money for broader electronic fraud schemes while also earning commissions along the way.
Armed with this intelligence, Wuchang police assembled a special 7-team task force this month to make strategic arrests. Teams were dispatched to key locations affiliated with the criminal ring across multiple provinces including Sichuan, Jilin, and Guangdong. Over the course of this operation, 27 gang members were successfully apprehended.
The systematic takedown of this massive $140 million cryptocurrency laundering ring highlights the Chinese authorities’ commitment to stamping out emerging financial cybercrimes no matter how complex. By uncovering the group’s sophisticated strategies, police also obtained valuable insights that will bolster future investigations into similar underground banking networks.
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