Authorities from China’s Hengyang County Public Security arrested members of a major criminal organization under the “Hundred-day Action” campaign.
The announcement came a few days after a Chinese court approved trading crypto assets as “virtual currencies.”
According to local reports, the suspects were a part of “9.15,” a criminal organization responsible for causing 300 cases involving telecom fraud.
The investigation into 9.15 revealed the group has laundered crypto funds since 2018. 9.15 acquired their illicit funds via telecom scams and gambling. The group used their illegally obtained funds to buy crypto assets.
The laundering ring, led by Hong Moumou, contacted “payment points” hidden across China. Then, they traded the crypto for US dollars, sent these funds to domestic gold owners, and cashed in the profits.
On Monday, Police from the nation’s Hunan province arrested 93 individuals across 10 different locations in China. The authorities made these arrests as part of the Hundred-day action campaign. This campaign was carried out to combat crypto laundering activities.
The task force for the operation was mobilized under the leadership of Liu Xiaolong.
Local reports state the authorities cracked down on 10 physical sites and confiscated over 300 electronic devices. Additionally, they froze over 300M Yuan ($42M) involved in the case. Moreover, the Police recovered 7.8M Yuan ($1.09M) from the laundering ring.
