During a press conference organized by the Ministry of Public Security of China on August 10th, Mr. Jinfeng Sun, the Deputy Director of the Cybersecurity Bureau, shared information about a series of incidents related to the use of malicious software tools such as Trojan viruses, deceptive websites, intrusion tools, and network surveillance in China. These incidents were aimed at deception and data theft.
According to Mr. Sun, there have been around 79 cases recently involving deepfake AI, where techniques like altering digital facial features were utilized for misleading purposes. This led to the arrest of 515 individuals by the police.
On July 18th, the Police in Son Tay province, China, apprehended 21 individuals in connection with a money laundering case involving 54.8 million USDT. The suspects allegedly purchased USDT at a lower price from Chinese citizens, and then sold them on foreign exchange platforms, taking advantage of value discrepancies and obtaining fiat money. This resulted in misappropriating customer deposits during the process of transferring funds abroad.
Despite the Chinese government’s strict measures to control emigration and foreign currency purchases by citizens, there have been allegations that the Chinese police have used enforcement measures to embezzle funds from cryptocurrency projects.
Last month, the cross-chain protocol Multichain was suspended after its CEO, Zhaojun He, was arrested by the police. Although specific details about his arrest remain undisclosed, funds from the Multichain project and its users were converted into stablecoins and private coins, then transferred out of the trading platform.