Gairika Mitra
Fuzhou police have dismantled a major cryptocurrency money laundering ring that provided illegal payment settlement services to online fraud and illicit industries.
The investigation, which uncovered vast amounts of money quietly circulating online, led to the arrest of 11 suspects. The breakthrough came when Fuzhou police discovered evidence linking a third-party payment platform to criminal activities, including online fraud and other black and gray market operations. The platform, which was reportedly operated by a gang, facilitated fund transfers using stablecoins, a type of virtual currency, to process payments for illegal futures trading and similar enterprises. In return, the criminals earned commissions for their services.
Upon identifying this crypto money laundering operation, Fuzhou authorities quickly assembled a special task force to investigate. The task force was able to map out the criminal network and expose its involvement in laundering funds for the black market.
In July 2024, police launched a coordinated operation across multiple locations, targeting the suspects involved. The elite task force arrested 11 individuals, including the gang’s leader, identified as Pan Moumou. The suspects have since been placed under criminal coercive measures.
Authorities have not yet disclosed the full extent of the funds laundered through the network, but the case underscores the growing role of virtual currencies in enabling illegal financial activities.
China Reinforces Crackdown on Crypto Activities
China’s laws regarding illegal payment and settlement activities were clarified in a 2019 legal interpretation by the Supreme People’s Court and the Supreme People’s Procuratorate.
According to this guidance, any involvement in certain illicit financial activities, such as using virtual currency to transfer funds or manipulate payment interfaces through fictitious transactions, falls under the provisions of Article 225, Paragraph 3 of the Criminal Law. This law specifically targets those engaged in unauthorized fund payment and settlement services.
It also outlines other illegal practices, including transferring funds from business to personal bank accounts or providing unauthorized cashing services. Those found guilty of engaging in such activities face severe legal consequences.
China has not been friendly toward its crypto policies. A BBC report revealed that China’s central bank has declared all cryptocurrency transactions illegal, effectively banning digital tokens like Bitcoin.
“Virtual currency-related business activities are illegal financial operations,” the People’s Bank of China stated, warning that such activities “pose a serious threat to the safety of people’s assets.”
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
