Take Advantage Of Cryptocurrencies, These Criminal Groups Do Money Laundering Amount Of IDR 85.3 Trillion

The police arrested the money laundering perpetrator. (Photo; Doc. Born2 Invest)

JAKARTA The criminal group in Hunan, China, is reportedly doing money laundering through crypto. Unmitigated, the group laundered money worth 40 billion yuan or 5.6 billion US dollars (equivalent to Rp85.3 trillion) through cryptocurrencies. The illegal act was successfully discovered by the authorities, the perpetrators were arrested.

Based on reports from local media, Chinese police managed to arrest 93 perpetrators. The action was carried out in the city of Hengyang, Hunan province. Police officers raided 10 locations and confiscated more than 100 electronic devices. Authorities also frozen about 42 million US dollars in the operation to eradicate financial crimes called the Hamber of Days.

The gang allegedly bought digital assets with illegal funds and then turned them into US dollars to launder money. Police claim that the source of the money came mainly from telecommunications gambling and fraud.

As is well known, China is not a cryptocurrency-friendly country. In recent years, the Chinese government has shown an unfavorable stance on the crypto industry and is considering implementing a strict ban. China's central bank, the People's Bank of China (PBOC) has instructed to ban all domestic cryptocurrency activities.

Even so, the Chinese population is still interested in crypto assets. This was revealed when crypto supporters on weibo social media were suddenly blocked. According to research firm Chainalysis, the country ranks 10th among global leaders in cryptocurrency adoption, as reported by CryptoPotato.

Chinese Police Ever Arrested 1,100 people for Money Laundering

In June last year, Chinese police arrested 1,100 people suspected of using digital currencies to launder funds for telecommunications network fraud activities. In addition, the authorities detained 170 criminal organizations linked to the scheme.

In March 2022, the Shanghai Public Security Bureau and the Yangpu Public Security Bureau conducted a joint investigation into a pyramid scheme using digital assets. As a result, they stopped an online platform that deceived nearly $16 million investors during its existence.

Police highlighted the operation, saying it was the first cryptocurrency pyramid scheme to be uncovered in Shanghai's history.

The general public must raise awareness of risk prevention and consciously reject the pyramid scheme. Shanghai's Department of Public Security Economic Investigation will also continue to crack down on economic crimes that endanger the rights and legitimate interests of citizens and effectively protect consumers' rights and legitimate interests," according to authorities.