Exposing Illegal Sale of Personal Data Using Cryptocurrency in China 🕵️♂️
Authorities in Beijing, in conjunction with the State Administration of Foreign Exchange, have uncovered a significant case involving the unlawful trade of personal information using crypto in China. Investigations revealed a network of criminals engaged in crypto transactions exceeding 2 billion yuan ($282 million) across 15 provinces and cities, including Beijing, Shanghai, and Zhejiang.
- Chinese media outlet CCTV reported on the elaborate criminal activities involving dark web transactions and illegal foreign exchange dealings.
- The case stood out for its covert nature and the use of various criminal methods, constituting a complex “serial case” encompassing a range of illicit activities.
Dark Web Deals with Cryptocurrency
Law enforcement officials in Beijing disclosed that perpetrators were leveraging the dark web and virtual currencies to facilitate the illegal sale of personal data belonging to Chinese citizens.
- According to Liang Fei, a case handler from the Economic Investigation Corps of the Beijing Municipal Public Security Bureau, some individuals operated in groups using overseas chat software to openly sell citizens’ personal information.
- The traded data included ID numbers, mobile phone numbers, home addresses, among other sensitive details.
These information-selling groups reportedly had hundreds of members, leading to the exchange of personal data belonging to millions of citizens within these illicit networks.
Cracking Down on Crypto Transactions 🚔
During the investigation, authorities identified a suspect named Yan Moumou as the key figure orchestrating transactions involving the sale of citizen information using virtual currencies.
- Yan’s substantial cash exchanges for virtual currency raised red flags, prompting further scrutiny from law enforcement.
- Lu Nan, a case handler from the Economic Crime Investigation Detachment of the Haidian Branch of the Beijing Municipal Public Security Bureau, highlighted the complex nature of Yan’s funding sources, which differed from traditional currency traders.
Investigators inferred that Yan was not merely a speculator but potentially involved in facilitating money laundering for underground banks due to the rapid movement of virtual currencies in his possession.
Uncovering the Mastermind Behind the Scheme 🔍
As the probe deepened, authorities discovered that Lin, who aided Yan in fund exchanges, had engaged in illegal foreign exchange activities using virtual currencies for an extended period.
- Further investigation revealed that Lin was not the primary architect of the criminal operation; a higher-level individual was calling the shots, with no prior connection between Lin and the mastermind.
- In a similar incident last year, authorities in China’s Shanxi Province apprehended 21 individuals linked to a major money laundering operation involving Tether (USDT) stablecoin worth over $54 million.
Hot Take: Combating Cybercrime in the Crypto Space 👮♂️
Cryptocurrency’s anonymous nature makes it an attractive tool for cybercriminals seeking to engage in illicit activities such as the sale of personal data. The recent crackdown in China underscores the importance of global cooperation and regulatory oversight to combat financial crimes in the crypto sphere.
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