In China, 63 people arrested in $1.7 billion USDT laundering case

Chinese police, during a sweeping operation, arrested 63 people in a case involving the laundering of 12 billion yuan ($1.7 billion) using the Tether USDT stablecoin, authorities said in a statement.

The group operated from May 2021, with funds coming from organizers of pyramid schemes, fraudulent schemes and gambling.

It drew the attention of law enforcement in July 2022 due to abnormal activity on the bank card of its organiser. Monthly turnover reached 10 million yuan, potentially indicating illegal financial activity.

A specially formed investigative group uncovered the structure of the criminal organisation and its methods of operation.

The group took orders through outlets scattered across the country. Then illicit funds were converted into the USDT stablecoin on the Tron (TRC-20) and Ethereum (ERC-20) blockchains. Afterwards, individuals hired through social networks worldwide, using anonymous cryptocurrency accounts for commission, assisted in laundering the funds.

More than 200 police officers were deployed to carry out arrests and searches, dispatched to 17 provinces. During the investigative measures, authorities seized illicit proceeds totaling about 130 million yuan.

The investigation is ongoing.

Earlier in September in China 93 suspects were arrested for laundering up to 40 billion yuan ($5.5 billion) through cryptocurrencies.

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