Chinese Authorities Bust Underground Banking Gang Linked to Tether
Chinese law enforcement agencies have recently made a significant breakthrough in their efforts to combat illegal financial activities. A large underground banking gang has been dismantled for allegedly facilitating illegal transactions using Tether’s USDT stablecoin, enabling over $2 billion worth of illicit transactions. Let’s delve into the details of this operation and its implications for the crypto industry.
193 Suspects Arrested In Tether-Linked Banking Scandal
The Chengdu Municipal Public Security Bureau uncovered a massive underground banking case involving a staggering 13.8 billion yuan ($1.9 billion) across 26 provinces, municipalities, and autonomous regions. A total of 193 suspects have been arrested nationwide with public security agencies filing 58 cases. Additionally, authorities have frozen 149 million yuan linked to the operation.
- The operation was initiated following the identification of suspicious fund settlements in November 2022
- The Chengdu Municipal Public Security Bureau formed a task force consisting of various departments
- Arrest operations were coordinated in multiple cities resulting in the apprehension of 25 criminal suspects
$1.9 Billion Illegal Scheme Unveiled
The investigation revealed that the criminal gang primarily operated within the import and export sector, utilizing USDT to provide illegal services for funds transfer abroad. Their activities included facilitating smuggling, fraudulent tax refund schemes, and various other criminal activities. The use of stablecoin like Tether helped them evade national foreign exchange supervision, posing significant risks.
- The gang was involved in illegal foreign exchange, payments, settlement businesses, smuggling, and fraud
- Tether was allegedly utilized by the gang for fund settlements and collaborations with other companies
- The use of stablecoin helped in evading national foreign exchange supervision
Crack Down On Criminal Operations
Tether has been proactive in cracking down on criminal operations utilizing its digital currency. The company’s CEO, Paolo Ardoino, has emphasized the firm’s commitment to combating illicit activities and has denounced Tether as being unsuitable for such purposes. Tether recently froze approximately $5.2 million USDT in response to findings related to phishing operations.
- Tether has taken steps to address illicit activities linked to its stablecoin
- Paolo Ardoino has stressed the company’s dedication to combatting illicit usage of Tether
- Security measures have been implemented in collaboration with Chainalysis to monitor secondary markets
Hot Take: Stay Informed and Vigilant Against Illegal Crypto Activities
As a crypto enthusiast, it is crucial to stay informed about the latest developments in the industry and remain vigilant against potential risks associated with illegal activities. The recent crackdown on the underground banking gang linked to Tether serves as a reminder of the importance of regulatory compliance and ethical conduct within the crypto space. Keep a keen eye on news and updates to ensure safe and secure participation in the digital asset ecosystem.
By
By
