A Cross-Border Gambling Crackdown in China Results in the Capture of Crypto Worth $160 Million

The first example of a crypto seizure in China due to a court judgement has been revealed.

The Chinese authorities reportedly identified a massive internet gambling case with a turnover of 400 billion yuan (about $56 billion) after conducting an investigation. It was discovered that cryptocurrency was central to the operation and played a key role in enabling criminal behaviour.

According to the cops: Preliminary investigation of this online gambling case indicates that the total amount at stake exceeded $4000,000,000, that more than 5 people were involved, that the server was set up overseas, that the most difficult virtual currency was used in the process of money laundering, and that the case’s main backbone may be located in another country.

This is a major step forward in China’s ongoing fight against criminal activity utilising cryptocurrency. Since 2017, the government has steadily tightened restrictions on crypto trading.

On July 28, 2021, Xiong Xong of Shayang County, Hubei Province, came forward to the Jishan police station about his involvement in mobile phone gambling.

Xiong became suspicious when he saw his coworkers amassing large amounts of money from a seemingly innocent example of mobile gaming.

The attraction of money has morphed mobile gaming into something evil. Xiong’s early success with the gaming app saw him earn thousands of yuan.

The more he gambled, the worse his luck became, and he eventually lost more than 100,000 yuan, which is almost $14,000. Chinese officials apparently identified a massive worldwide criminal network that had been using cryptocurrencies to launder money and conceal its illegal operations as a result of a comprehensive investigation.

According to local accounts, using crypto made it very difficult for investigators to track down the source of funding and fully grasp the scope of the operation.

Subsequently, a major turn of events led to the arrest of persons in a number of regions, ultimately bringing down 14 different criminal organisations.

According to the local authorities, this is the very first instance of a nation recovering digital cash. After two years of investigation, the police finally brought the primary suspect, Qiu Moumou, to trial. Since 1949, the PRC has had a strict ban on gambling.

China made it official in September 2021 that buying, selling, and exchanging cryptocurrencies was forbidden. Foreign exchanges have continued to facilitate crypto trading despite a 2019 prohibition.

Investors and companies have approached the urban region with caution up to this point. Despite the ban, millions of Chinese citizens are nonetheless actively using cryptocurrency exchanges and trading platforms.

Also Read: IMF Demands Crypto To Be Kept Separate