Authorities continue to hunt down crypto scammers around the world. In China, police have arrested a gang that allegedly laundered the equivalent of 1.7 billion euros in cryptos, in Brazil a Bitcoin godfather faces serious allegations.
In China, authorities have been cracking down on cryptocurrencies for some time. But that didn’t stop a group of 63 people from laundering 12 billion yuan using cryptocurrencies.
Tether served as a means to an end
Since May 2021, those arrested have allegedly laundered illegal profits from fraud, gambling and a pyramid scheme through the cryptocurrency Tether. After that, the huge sum would have been transformed back into yuan.
Finally, Tether is a stablecoin pegged to the US dollar. It was therefore ideal for this purpose. In order to achieve their goal, those arrested use a sophisticated system.
They first recruited many people across the country through the Telegram news service, which is blocked in China. They have been instructed to open crypto accounts to help launder money. Depending on the amount of money they could legalize, they would receive a commission for their services.
But of the alleged 12 billion yuan, authorities have so far only been able to obtain 130 million. The case proves that, despite the authorities’ best efforts, there is still a lot of crypto activity in China.
persuaded to return
Most of the time, the Chinese turn to overseas crypto exchanges to process their transactions. The case exploded when a suspect’s account showed a monthly trading volume of 10 million yuan. Two suspects fled to Bangkok, but authorities said they were “persuaded” to return.
The case is not isolated; Last year alone, Chinese authorities arrested 1,100 people suspected of illegally laundering money with cryptocurrencies.
The Bitcoin pharaoh ruled with an iron fist
In Brazil, on the other hand, the police managed to present strong evidence against the so-called Bitcoin pharaoh. This local mob boss enforced his monopoly by any means necessary and even hired hitmen to eliminate unwanted competitors.
Arrested more than a year ago, things are now getting tougher for the godfather. Secretly recorded conversations prove the accuracy of the allegations. The Bitcoin pharaoh allegedly not only moved huge sums of money, but also deceived thousands of people.
The organization that the Bitcoin pharaoh has built behind the scenes is probably huge. It supposedly includes professional killers, guns and spies. A separate secret service should have ensured that no one could endanger the company.
Follow our affiliate links:
Buy your cryptos PrimeXBTthe next generation trading platform
Secure your cryptos on wallets like great books and Trezor
Participate in your crypto trades anonymously NordVPN