Authorities in China have detained 16 individuals suspected of laundering money through a network tied to phone fraud schemes. The suspects reportedly exploited bank cards and various payment accounts to shift illicit funds, including transfers linked to digital assets.
How the Network Operated
The group allegedly recruited people willing to provide bank cards and payment accounts to move suspicious money. Investigators described the structure as built on close personal relationships, facilitating the flow of funds between different payment channels. While officials have not revealed the total amount laundered or specific cryptocurrency details, local reports suggest similar cases often convert funds into stablecoins like USDT on blockchains such as TRON.
This crackdown follows China's intensified regulatory measures against crypto-related financial crimes. Since 2021, digital asset exchange services have been illegal, pushing some illicit activity toward informal channels and offshore platforms. In August 2024, China’s Supreme People’s Court and Procuratorate clarified judicial rules, explicitly including virtual asset transfers as methods for concealing criminal proceeds. also a revamped anti-money laundering law that took effect in January 2025 reinforced monitoring obligations and inter-agency cooperation to combat fraud and payment abuse.
The recent arrests exemplify China's firm stance against crypto misuse amid global efforts to clamp down on digital money laundering. While the investigation continues, it highlights how authorities are linking phone scams, traditional banking fraud, and crypto transfers in a broader money laundering crackdown.
This material is for informational purposes and does not constitute financial advice.
