China started taking action against the illegal operations of criminal gangs involved in crypto gambling networks in 2018. China recently revealed that it had busted another criminal gang for its involvement in illegal gambling and crypto fraud.
According to recent developments, Chinese authorities have arrested an illegal group that laundered around $5.6 billion in proceeds by utilizing cryptocurrencies. The criminal group would encourage citizens to participate in gambling and convert those funds to cryptocurrency.
The digital currency would be converted into the US Dollar and transferred to different financial companies. The group would use collection points spread across China to function their activities.
Arrests similar to this are being done as a part of the 100-Day Action exercise launched to take down criminal activities in China. A total of 93 people have been arrested for alleged involvement in such activities, freezing accounts holding approximately $41.4 million worth of funds.
Funds recovered stood at $1.07 million. These have been traced to a few victims who will soon receive these funds despite their gambling involvement, a crime throughout China.
More arrests are expected to happen as China continues taking down illegal operators of such a business. Law enforcement is leaving no stone unturned to scrutinize the data.
Chinese authorities have taken down 80 online platforms and 47 affiliates, further closing 27 businesses that helped criminals launder the funds. As of the time of drafting this article, approximately $23.53 million in funds have been seized by the police.
China has seen a sudden rise in the number of crypto gambling sites as the country is still battling the Covid-19 pandemic. Citizens have turned to online platforms as their traveling and earning modes are limited.
Authorities have cited anonymity as the factor causing difficulty in their attempts to trace accounts to physical people. Crypto wallet addresses remain anonymous on the entire network, hiding details that could assist Chinese authorities in reaching the criminals and others involved. Chinese authorities are currently relying on Crypto forensic specialists to detect and track wallet users, leading to the arrest of some high-profile individuals.
Several users of Binance received a message saying that their accounts were frozen indefinitely. Binance has asked the users to contact the Police department for more details.
Digital currencies are experiencing a discussion around the globe, with leaders exploring ways in which they can be blended with the traditional economy. The same is not the case in China, as the country has expressed its disdain for the cryptocurrency industry.
China only recognizes its Central Bank Digital Currency and views every other cryptocurrency as a fraud, banning them in September last year. China has also banned Cryptocurrency mining with effect from May last year.