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Illegal Operation Involving Underground Banks and Virtual Currencies
The Public Security Bureau of Panshi City in Jilin Province has successfully cracked down on an illegal operation related to underground banks and virtual currencies.
Details of the Case
The case, involving approximately 2.14 billion yuan (around $300 million), resulted in the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
Exploitation of Virtual Currencies
The suspects took advantage of the anonymous and decentralized nature of virtual currencies to conduct unlawful exchange operations between the Chinese Renminbi (RMB) and the South Korean Won.
Facilitation of Money Laundering Activities
The illicit scheme enabled the suspects to facilitate large-scale money laundering activities across borders.
Investigation and Arrests
Authorities uncovered the operation through the Economic Investigation Brigade of the Panshi City Public Security Bureau. They gathered evidence pointing to the involvement of Jin Moudong and Shen Mou in conducting currency exchange businesses in both China and South Korea.
After further investigation, the police were able to apprehend Jin Moudong, Shen Mou, and their associates, leading to the seizure of bank cards and tools used in the commission of the crimes.
Illegal Activities of the Criminal Network
The investigation revealed that the criminal network engaged in various illegal activities, including using domestic accounts for fund transfers, conducting over-the-counter trades of virtual currencies, and settling transactions in Korean Won.
The operation catered to Korean purchasing agents, cross-border e-commerce platforms, and import-export trading companies, facilitating the exchange of RMB for Korean Won and vice versa.
Other Related Arrests
In a separate incident, a joint operation involving national authorities from Austria, Cyprus, and the Czech Republic led to the arrest of six individuals connected to an online scam related to a new cryptocurrency. Assets totaling €2 million were seized and frozen.
Instagram influencer Jebara Igbara, also known as “Jay Mazini,” was sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme.
Additionally, Queensland Police took action against an alleged crypto investment fraud on the Gold Coast, resulting in the arrest and charging of four individuals following an investigation by the Financial and Cyber Crime Group Money Laundering Unit that began in July 2022.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
