Chinese courts handed down prison sentences ranging from three to six years to five individuals operating a Sifang payment platform linked to an illegal gambling network. The operation moved roughly 2.95 billion yuan, equivalent to about $428 million, using USDT, bank cards, and third-party payment accounts.
Details of the Sifang Gambling Network Case
According to court documents from the Intermediate People’s Court of Xilin Gol League in Inner Mongolia, the defendants processed illicit payments between May 24, 2022, and October 18, 2023. They funneled funds through 105 merchant accounts tied to ten third-party payment companies. The network acted as a fourth-party payment aggregator that connected gambling sites to payment channels without proper licensing.
One of the convicted, Ma, received a prison term of four and a half years along with a 3 million yuan fine. Authorities also ordered the seizure of 2.95 million yuan in illegal profits from him. Zhu was sentenced to five years and fined 800,000 yuan, while Zhang got six years in prison with an 850,000 yuan fine. The others received sentences between three and six years.
How the Operation Worked
The group started building the payment system after identifying the lucrative potential of gambling platform payment services. They commissioned 32 collection and payment platforms and rented servers outside China to support their operation. These platforms bridged overseas gambling websites with merchant accounts at legitimate third-party payment companies.
The operators handled various tasks: managing payment routes, settling disputes, coordinating with third-party providers, and distributing profits. Ma played a key role in introducing payment channels and assisting merchants in registering accounts.
Investigators leveraged data from Tether wallets and records from crypto exchange OKX to trace the transactions and link them to the illegal operation.
This material is for informational purposes and does not constitute financial advice.
