On July 19th, authorities in Sontay province, China, recently arrested 21 individuals accused of being involved in a money laundering scheme involving 54 million Tether (USDT).
During the police investigation, the suspects were found to be operating across four provinces and had been involved in purchasing discounted USDT through unlicensed cryptocurrency exchange services since October 2021.
These individuals are believed to have made huge profits by selling tokens at high prices through social media and money laundering platforms. The transactions involved staggering amounts, with approximately 54.8 million USDT over the course of nearly three years.
All 21 individuals are said to have confessed to the crime of money laundering for cybercriminals using stablecoins.
Despite China’s 2017 ban on initial coin offerings (ICOs) and the subsequent ban on cryptocurrency trading in 2021, Chinese citizens have continued to find ways to access cryptocurrencies.
The ban on cryptocurrency trading in mainland China and restrictions on foreign cryptocurrency exchanges serving domestic customers have made Hong Kong an attractive destination for cryptocurrency enthusiasts.