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Polskie Stowarzyszenie Bitcoin

Chinese accused of money laundering with cryptocurrencies: shocking operation details


Chinese Citizens Accused of Cryptocurrency Fraud Worth Millions of Dollars

Two Chinese citizens have been accused by the US Department of Justice of orchestrating a cryptocurrency-related fraud that resulted in at least $73 million in illicit proceeds. Li and Zhang, the main suspects, face charges of money laundering and international money laundering.

Cryptocurrency-Related Frauds

The accused individuals allegedly instructed accomplices to establish bank accounts in the names of “shell companies” and launder money from investment scams related to cryptocurrencies. One of the techniques used was the long-term investment fraud known as “pig butchering”, which involves luring victims into cryptocurrency-related schemes.

Money Laundering on a Massive Scale

According to the DOJ, victims of the fraud are persuaded to transfer millions of dollars to accounts in the United States held by the suspects’ shell companies. These funds are then sent to accounts abroad, where they are converted to Tether (USDT) and deposited into wallets controlled by Li and Zhang. Despite the accused laundering $73 million, over 341 million in “virtual assets” were deposited into a wallet associated with them.

Heightened Law Enforcement Efforts Combatting Cybercrime

The arrest of the suspects was made possible through international law enforcement cooperation aimed at disrupting the cybercrime ecosystem and combating fraud across all financial sectors. The US Department of Justice has also intensified its efforts to prosecute cryptocurrency-related crimes, as have authorities in other countries.

Elizabeth Warren Calls for Action on Cryptocurrency Usage

Elizabeth Warren, a long-time critic of cryptocurrencies, has called for the Department of Homeland Security and the Department of Justice to report on the use of cryptocurrencies in facilitating the dissemination of child sexual abuse material (CSAM). Legal actions against individuals involved in cryptocurrencies have increased following the conviction of Sam Bankman-Fried and the founder of Binance for money laundering.