2023-12-24 09:57:57
The police in Qingdao, Shandong Province, China recently uncovered a large-scale underground bank case covering 17 provinces and municipalities across China, involving a total amount of 15.8 billion yuan (approximately NT$69.9 billion), and arrested a man who cooperated with this underground bank and engaged in illegal trading virtual Acceptor of money business.
(Preliminary summary: China’s trading of USDT “can be locked up for more than five years”, Guangdong court case: it is a crime of illegal foreign exchange trading, endangering national financial security)
(Background supplement: Chain games are completely illegal! China’s new game law prohibits anonymous wallets and token exchange for legal currency; login rewards and first-draw bonuses are also prohibited)
According to China CCTV NewsreportIn November 2022, the Qingdao police in China discovered that thousands of accounts belonging to Jin and others were extremely abnormal. The average daily transfer amount was more than 3 million yuan, the total transaction amount was as high as more than 2 billion yuan, and there were all-weather high levels of large-amount funds. Abnormal characteristics such as frequency operation, fast forwarding and fast exiting.
These accounts are operated through online banking or mobile banking. The online operation address is displayed overseas, but the relevant account holders have not traveled abroad. Only Jin’s son has been outside China for a long time, and the online operation address is similar to Therefore, the police suspected that Jin was the actual controller of these accounts.
The police said that most of the people who sent money to the account controlled by Jin had the experience of studying abroad or multiple short-term entry and exit, and the relevant accounts had records of fund transactions with accounts of other suspected underground banks in the country. Therefore, it was determined that Jin was suspected of using them. The bank account controlled provided illegal currency exchange services. At the same time, there were also transactions with other underground banks in the country, which was suspected of illegal business crimes.
Textile industry workers become illegal virtual currency acceptors
According to investigations by investigators from the State Administration of Foreign Exchange and public security organs, there are more than 20 million suspicious bank transaction records related to Jin, and the fund transaction volume exceeds tens of billions of yuan. However, the account situation is extremely abnormal, and a large amount of Jin’s funds are concentrated. Transferred to multiple bank accounts controlled by Li in China, and the funds could only go in but not out.
Bizarrely, Li is an ordinary employee of a county-level urban textile company. The amount of fund transfers from the third-party bank card associated and controlled by her name is as high as more than 5 billion yuan. It turns out that her other identity is actually a professional An acceptor engaged in illegal trading of virtual currencies, she helped Jin exchange a large amount of funds into virtual currencies such as USDT through an overseas virtual currency trading platform.
The State Administration of Foreign Exchange of China pointed out that after underground banks collect RMB from customers, they purchase virtual currencies and then sell the virtual currencies through overseas trading platforms to obtain the required foreign currency funds. This process realizes the exchange of RMB and foreign currencies. Conversion constitutes an illegal act of illegally buying and selling foreign exchange.
After obtaining conclusive evidence, the investigators carried out a closing operation. The Qingdao Public Security Bureau seized USDT, Litecoin and other virtual currencies worth approximately 2 million yuan involved in the case. The case has been transferred to the Procuratorate for review and prosecution.
Buying and selling virtual currency is illegal. Buying and selling foreign exchange
The report pointed out that in China, virtual currency does not have the same legal status as legal tender, and conducting virtual currency-related business activities is illegal financial activity. At the same time, when buying and selling foreign exchange in China, the transaction must be carried out in places designated by the state. Otherwise, it is illegal to buy and sell foreign exchange. In serious cases, criminal liability will also be pursued.
Previously, China’s Guangdong Provincial Higher People’s Court also shared a case that it may be illegal to buy USDT cheaply and then resell it for profit in China. One defendant used cash to buy USDT from retail investors in the currency circle at a price lower than the platform price, and then resold it at the exchange rate of the U.S. dollar that day. Earning the middle price difference and profiting from it constitutes an illegal business crime.
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