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Chinese police seize $160 million in cryptocurrency

According to a report on the website toutiao.com, a Chinese police investigation has uncovered a massive online gambling case worth 400 billion yuan (about $56 billion), with cryptocurrency at the heart of the operation.

Qiu Moumou – the alleged mastermind and prime suspect – now faces trial after a two-year effort by the authorities. Gambling has been illegal in the People’s Republic of China since 1949.

Landmark cipher case in China

The case was exposed when Xiong Xong, a native of Shayang County, Hubei Province, reported his involvement in mobile gambling to Jishan Police Station on July 28, 2021. What started as innocent mobile gaming took a dark turn as Xiong witnessed colleagues hoarding sums big money.

Intrigued, he downloaded the game app and started to win thousands of yuan. However, his fortune reversed as his bets increased, resulting in losses of over 100,000 yuan (US$14,000).

After an extensive investigation, Chinese authorities have reportedly uncovered a massive international crime ring that uses cryptocurrency to hide its activity. according to local accountswhich made it extremely difficult for the authorities to trace the source of the funds and to understand the full scope of the operation.

However, the hack then led to arrests in several counties, resulting in the dismantling of 14 alleged gangs, the arrest of more than 130 suspects, and the seizure of computers, cell phones and bank cards.

During their efforts, the police seized more than $160 million in cryptocurrency. Local police described it as the “first case of virtual currency recovery” in the country. The case is being reported as a milestone for the use of digital assets to facilitate crime.

China banned all cryptocurrency transactions in 2021

In September 2021, China declared all cryptocurrency trading illegal. Although the country initially banned it in 2019, trading through foreign exchanges has continued.

However, this has not stopped millions of Chinese from continuing to use cryptocurrency. Recently, the world’s most populous country hinted at softening its stance.

Since the ban on the mainland, Hong Kong, a special administrative region of China, has adopted a divergent approach by taking steps to establish itself as a hub for digital assets.

Until now, investors and companies have been cautious in their entry into the city area. Chinese authorities are notorious for cracking down on industries that displease the Communist Party.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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