Chinese Authorities Dismantle Underground Bank Handling $1.9 Billion in USDT

The Municipal Public Security Bureau of Chengdu, Sichuan Province, with the assistance of colleagues, has halted the operations of an underground cryptocurrency bank that provided financial services to smugglers and those seeking to transfer assets abroad. This was reported by local media.

To evade national currency oversight, the suspects utilized USDT in their operations, conducting payment transactions totaling 13.8 billion yuan (over $1.9 billion).

According to the investigation, the network had been active since January 2021 across 26 provinces in the country. The business engaged in illegal overseas fund transfers, foreign currency exchange for smuggling medicines and cosmetics, purchasing assets abroad, and collaborating with third-party companies for tax refund fraud.

Law enforcement arrested 193 suspects in 26 provinces, including the group’s organizers Lin, Weng, and Chen. A large number of bank cards and other payment instruments were seized. Funds amounting to 149 million yuan ($20.6 million) were frozen.

The individuals involved are charged with financial fraud, smuggling goods, including prohibited substances, export tax refunds, and other criminal activities.

The case is currently with the Chengdu Municipal People’s Procuratorate for the preparation of an indictment and subsequent court proceedings.

Earlier, ForkLog reported that Chinese police uncovered an underground banking scheme using digital assets for the illegal exchange of yuan and South Korean won amounting to $295.8 million.