Chinese citizen jailed for nine months over USDT purchase

A Chinese citizen, identified by authorities as “Mr. Chen,” was sentenced to nine months in prison for purchasing USDT worth 94,988 yuan (just over $13,000). Local media reported местные СМИ.

According to the prosecutors, in February 2022, his acquaintance surnamed Lin contacted Chen with a request to procure stablecoins for him, transferring fiat for these purposes.

For his services the defendant received 147.1 yuan ($20.26) as a commission.

“Criminals use virtual currency to transfer and launder stolen funds. The purchase of virtual currency, given that others use the internet to commit crimes, is a violation of the law,” the prosecutors noted.

Chen will serve nine months in prison with a one-year suspended sentence. He must also pay a fine of 5,000 yuan ($689).

In September 2021, the People’s Bank of China, in a joint statement with nine state agencies, classified cryptocurrency operations as illegal financial activity.

In February 2022, China tightened criminal liability for illicit fundraising in digital assets. At the same time, the Shanghai High Court recognised Bitcoin as a virtual asset with economic value protected by law.