The People’s Bank of China helped law enforcement identify suspects involved in organising illegal gambling. They used Tether (USDT) to launder money, The Block.
The operation took place in Huizhou, in Guangdong province. With the aid of a local regulator unit, police shut down three sites and arrested 77 suspects who used USDT to launder nearly 120 million yuan ($18 million).
The central bank noted that criminals typically set up gambling sites in overseas jurisdictions. They help users bypass capital controls on cross-border transactions.
In the described case, the suspects used bank transfers and digital assets.
“Money laundering was carried out through several levels, so the transfers of funds were extremely convoluted,” the regulator noted.
The operation was part of a broader crackdown on illicit economic activity. In June, Chinese law enforcement blocked the accounts of many over-the-counter crypto traders and their clients over suspicions of involvement in money laundering.
In September, the regulator blocked access to online banking for traders on local crypto OTC platforms that had been blacklisted.
China is not alone in the fight against money laundering. In October, Europol said that 20 suspects were arrested in connection with the criminal group QQAAZZ.
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