The Chinese police have uncovered a cryptocurrency scam worth $300 million
A massive fraud case involving the unlawful exchange of Tether for Chinese Yuan (RMB) has been detected in China.
The Chinese city of Tongliang was rocked by a large fraud case involving the unlawful exchange of Tether (USDT) for Chinese Yuan (RMB), which resulted in the conviction of 21 persons.
As an example of the developing relationship between cryptocurrencies and criminal activity, consider the recent RMB 2.25 billion ($307 million) scam.
According to the court’s bulletin, 20 people were involved in the crime, with Jiang and Zheng being the two primary criminals and the ringleaders.
The gang laundered their stolen USDT via local exchanges on the virtual currency platforms using a decentralized wallet called Bitpie, which is similar to Metamask.
Then, they withdrew the fiat cash in different Chinese cities under the guise of “project payments” and “worker’s wages.” According to the evidence presented in court, Jiang made a total of RMB 22.62 million ($3.0 million).
As the case proceeded, the defendants were discovered to have concealed and masked criminal gains. As a result, Jiang was given a six-year, three-month jail term and a fine of 500,000 RMB. Zheng was given the same monetary penalty and prison term of six years.