Crackdown on Underground Banks Using Digital Currency in Money Laundering

02/23/2023 13:08 • Digital Disruptors • 131 views

On February 23, it was reported that recently, under the command of the Criminal Investigation Bureau of the provincial department, the New Crime Research and Operation Center of Rizhao Public Security Bureau cracked a case of “double supervision” of the provincial department, killed three underground banks that used digital currency USDT as money laundering acceptors, seized 15 suspect in Xuzhou, Jiangsu, Taizhou, Zhejiang, Zhangzhou, Fujian and other places for several consecutive days, detained 6 vehicles, 10 computers, more than 30 mobile phones, and more than 30 million yuan of funds involved in the case.

Rizhao Public Security Bureau cracked down on three underground banks of money laundering acceptors using digital currency USDT, involving more than 30 million yuan

Analysis based on this information:

The message reports that the Criminal Investigation Bureau of the provincial department, under the command of the New Crime Research and Operation Center of Rizhao Public Security Bureau, has cracked down on a case of “double supervision” of the provincial department. The case involved three underground banks that were using digital currency USDT as money laundering acceptors. The operation resulted in the seizure of 15 suspects in several cities, including Xuzhou, Jiangsu, Taizhou, Zhejiang, Zhangzhou, Fujian, and more than 30 million yuan of funds involved in the case.

The crack-down is significant because it highlights the growing use of digital currency in underground banking and money laundering activities. USDT is a type of digital currency that is pegged to the US dollar, and it has gained popularity in the crypto industry for its stable value. However, USDT has also been the subject of controversy and concerns regarding its transparency and whether it is backed by real dollars.

Interestingly, the police operation used advanced technology and surveillance to monitor the suspects and trace the flow of funds through digital currencies. The operation seized a significant bank of computers and mobile phones, which will likely be helpful in tracing the activities of the suspects and unraveling the deeper network of underground banks using digital currency for money laundering.

The news also highlights the increasing crackdown by Chinese authorities on financial crimes and underground banking. The government has been stepping up its efforts in recent years to tighten regulations on the crypto industry and prevent illicit activities, such as money laundering and fraud.

In conclusion, the news is a significant win in the fight against financial crimes and underground banking, and it highlights the growing trend of using digital currency for illegal activities. By cracking down on this network of underground banks using digital currency, the authorities have sent a strong message to other criminals who might be considering similar activities.

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