The Chinese authorities announced that in the latest round of crackdowns, more than 170 criminal gangs have been wiped out and more than 1,100 suspects have been arrested. A criminal group that provides cryptocurrency money laundering services to telecom fraudsters.
Combating telecom fraud using cryptocurrency money laundering
The Ministry of Public Security of the People’s Republic of China announced on Wednesday that the fifth round of “card-breaking” operations has begun.
This has “severely cracked down on illegal criminal groups that provide virtual currency money laundering services for telecom fraud,” the ministry added in detail:
More than 170 criminal gangs were cracked down, and more than 1,100 suspects were arrested.
The announcement pointed out that the criminal group used cryptocurrency to transfer funds involved in the case.
Police investigations revealed that these criminal gangs usually cooperate with “coin farmers” who help fraudsters to launder money. These coin farmers will register on various cryptocurrency trading platforms and buy and sell cryptocurrencies according to the specifications of the gang. Announcement description:
After the money laundering process is completed, “coin farmers” can receive “commissions” ranging from 1.5% to 5%. The high amount of illegal proceeds attracted a large number of people to participate and caused serious social harm.
The announcement further pointed out: “As of now, the’Broken Card’ operation has cracked down on 15,000 illegal criminal gangs… 311,000 criminal suspects have been arrested… 18,000 illegal industry outlets and institutions have been controlled.”
On October 10th last year, after the State Council of China held an inter-ministerial joint meeting to crack down on new types of telecommunications network fraud and criminal activities, the card breaking operation was officially launched. The affected cards are mainly mobile phone cards and bank cards.
The China Payment and Clearing Association said on Wednesday that the number of crypto-related crimes is rising. The association said in a statement that cryptocurrencies “increasingly become an important channel for cross-border money laundering”, adding that they have become a popular payment method for illegal gambling activities. The association pointed out that nearly 13% of gambling sites support the use of cryptocurrency, which makes tracking more difficult.
The Chinese authorities have recently stepped up their efforts to combat illegal activities involving cryptocurrencies. In addition to reiterating the cryptocurrency ban issued a few years ago, three industry bodies have recently banned crypto-related financial and payment services. The State Council also stated that it will ban Bitcoin mining. On Wednesday, Bitcoin.com News reported that China’s Qinghai Province has instructed the closure of Bitcoin mining operations.
What do you think of this card breaking operation? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. The company or the author shall not bear direct or indirect responsibility for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.