COINOTAG News reported on December 20 that Xinhua News Agency flagged a Chinese national named Tong after a U.S. authorities’ tip linked him to money-laundering tied to drug trafficking. This disclosure underscores heightened anti-money laundering vigilance across borders.
Authorities from the Ministry of Public Security mobilized the Liaoning Provincial Public Security Department to verify the case; Tong and a co-suspect, Chen, were detained in Wuhan, Hubei Province after attempting to flee, with sentencing and fines imposed in September.
Investigators report Tong operated a hawala-style scheme to move funds exceeding 16 million yuan through domestic bank cards, directing associates to acquire Bitcoin and Tether and resell them abroad for U.S. dollars.
The inquiry also uncovered attempts to evade U.S. supervision via large cash withdrawals and cryptocurrency transfers. Feedback was shared through the China-U.S. anti-money laundering cooperation channel, with both sides agreeing to strengthen cross-border enforcement.
Source: https://en.coinotag.com/breakingnews/china-cracks-down-on-bitcoin-based-money-laundering-ring-involving-16-million-yuan-linked-to-drug-trafficking
