Chinese authorities have announced that more than 170 criminal gangs have been eliminated and more than 1,100 suspects have been arrested. Criminal group providing cryptocurrency money laundering services to telecom fraudsters.
crackdown on telecom fraud using cryptocurrencies for money laundering
Ministry of Public Security of the People’s Republic of China announced The fifth round of the “Broken Cards” operation has been carried out on Wednesday.
It has “severely cracked down on illegal and criminal groups that provide virtual currency money laundering services for telecommunications fraud,” the ministry elaborated:
More than 170 criminal gangs have been eliminated, more than 1,100 criminal suspects have been arrested.
Criminal gangs used cryptocurrencies to transfer funds involved in the case, the announcement notes.
Police investigations have revealed that these criminal gangs usually work with “coin farmers” who help fraudsters launder money. These coin farmers will register with various cryptocurrency trading platforms and buy and sell cryptocurrencies according to the gang’s specifications. The description of the announcement is:
After completing the money laundering process, ‘coin farmers’ can get a ‘commission’ ranging from 1.5% to 5%. High illegal income attracts large numbers of people to participate, causing serious social harm.
The announcement further notes: “So far, the ‘Broken Card’ operation has eliminated 15,000 illegal criminal gangs … arrested 311,000 suspects … and controlled 18,000 illegal industry outlets and institutions.”
The Broken Card operation was launched on October 10 last year, when the State Council, the cabinet of China, convened an inter-ministerial joint meeting to crack down on a new type of illegal telecom network fraud. The affected cards are mainly mobile phone cards and bank cards.
The Payment and Clearing Association of China said on Wednesday that the number of crypto-related crimes is on the rise. “Cryptocurrencies have increasingly become an important channel for cross-border money laundering,” the association said in a statement, adding that they have already become a popular means of payment in illegal gambling activities. The association noted that around 13% of gambling sites support the use of cryptocurrencies, which has made tracking more difficult.
Chinese authorities have recently stepped up their efforts to crack down on illegal activities involving cryptocurrencies. Apart from repeated Its cryptocurrency prohibition was issued several years ago, after three industry bodies recently banned crypto-related financial and payment services. The State Council has also indicated that it will ban bitcoin mining. On Wednesday, Bitcoin.com News Reported China’s Qinghai province has ordered the closure of bitcoin mining operations.
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