{"id":192556,"date":"2021-06-10T18:00:22","date_gmt":"2021-06-10T17:00:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=192556"},"modified":"2021-06-10T12:37:56","modified_gmt":"2021-06-10T11:37:56","slug":"1100-people-arrested-in-china-over-alleged-crypto-fraud","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/1100-people-arrested-in-china-over-alleged-crypto-fraud\/","title":{"rendered":"1,100 people arrested in China over alleged crypto fraud"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Chinese police busted a network of more than 170 criminal groups as they arrested 1,100 suspects involved in money laundering by buying cryptocurrencies, security officials said in a statement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The charged individuals are accused of converting illegal proceeds into cryptocurrencies via crypto exchanges, the Ministry of Public Security <\/span><a href=\"https:\/\/mp.weixin.qq.com\/s\/XjO7d4xjn7fXFCTQNf0Hqw\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">, without revealing the amount of money involved.<\/span><\/p>\n<h2><strong>Illegal proceeds from telephone and Internet scams<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As of Wednesday, the police had busted more than 170 criminal groups believed to have used cryptocurrencies to launder illegal proceeds from telephone and Internet scams.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Ministry of Public Security, criminal groups organized personnel to register on various cryptocurrency trading platforms with personal bank cards and information, then purchase and exchange crypto in accordance with their requirements to become &#8220;coin farmers&#8221; who help them launder money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The money launderers charged their criminal clients commissions ranging from 1.5% to 5% to convert illegal proceeds into cryptocurrencies via crypto exchanges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The high illegal income attracted a large number of people to participate and provide services to fraud gangs, helping them transfer and launder money by purchasing and exchanging cryptocurrencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The security officials used this as an opportunity to warn the general public that the number of crimes involving the use of cryptocurrencies is on the rise and to increase their awareness of the rule of law and prevention in order to avoid becoming accomplices to fraudsters.<\/span><\/p>\n<h2><strong>The pressure on crypto keeps intensifying<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Meanwhile, the country\u2019s biggest crypto exchanges, <\/span><span style=\"font-weight: 400;\">Huobi, OKEx, and Binance<\/span><span style=\"font-weight: 400;\"> were <\/span><a href=\"https:\/\/www.aljazeera.com\/economy\/2021\/6\/9\/searches-for-crypto-exchanges-currently-blocked-in-china\"><span style=\"font-weight: 400;\">blocked<\/span><\/a><span style=\"font-weight: 400;\"> from the <\/span><span style=\"font-weight: 400;\">most popular Chinese internet search engines and social media platforms<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since <\/span><a href=\"https:\/\/www.reuters.com\/technology\/chinese-financial-payment-bodies-barred-cryptocurrency-business-2021-05-18\/\"><span style=\"font-weight: 400;\">May<\/span><\/a><span style=\"font-weight: 400;\"> this year, Chinese banks and payment firms have been prohibited from providing crypto-related services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though the government has already banned trading in crypto and keeps actively tightening its restrictions, people are still able to <\/span><a href=\"https:\/\/cryptoslate.com\/china-crypto-traders-turn-to-otc-platforms-amidst-bitcoin-crackdown\/\"><span style=\"font-weight: 400;\">trade<\/span><\/a><span style=\"font-weight: 400;\"> in cryptocurrencies such as Bitcoin (<\/span><a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\"><span style=\"font-weight: 400;\">BTC<\/span><\/a><span style=\"font-weight: 400;\">) online.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As China keeps intensifying its pressure on crypto, the government is finalizing its central bank digital currency (CBDC) <\/span><a href=\"https:\/\/cryptoslate.com\/billionaire-ray-dalio-says-chinese-digital-yuan-could-compete-with-bitcoin\/\"><span style=\"font-weight: 400;\">projects<\/span><\/a><span style=\"font-weight: 400;\">, leaving less and less room for competition.\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese police busted a network of more than 170 criminal groups as they arrested 1,100 suspects involved in money laundering by buying cryptocurrencies, security officials said in a statement. The charged individuals are accused of converting illegal proceeds into cryptocurrencies via crypto exchanges, the Ministry of Public Security said, without revealing the amount of money [&hellip;]<\/p>\n","protected":false},"author":699,"featured_media":192563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,9836],"tags":[76769],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>1,100 people arrested in China over alleged crypto fraud<\/title>\n<meta name=\"description\" content=\"Chinese police busted a network of more than 170 criminal groups, arresting 1,100 suspects involved in money laundering by buying crypto.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/1100-people-arrested-in-china-over-alleged-crypto-fraud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"1,100 people arrested in China over alleged crypto fraud\" \/>\n<meta property=\"og:description\" content=\"Chinese police busted a network of more than 170 criminal groups, arresting 1,100 suspects involved in money laundering by buying crypto.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/1100-people-arrested-in-china-over-alleged-crypto-fraud\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-10T17:00:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-06-10T11:37:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/06\/china-arrest-fraud.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ana Grabundzija\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ana Grabundzija\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/1100-people-arrested-in-china-over-alleged-crypto-fraud\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/1100-people-arrested-in-china-over-alleged-crypto-fraud\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#person\",\"name\":\"Ana Grabundzija\",\"url\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ana-grabundzija\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/05\/cs-author-ana-300x300.jpg\",\"caption\":\"Ana Grabundzija\"},\"jobTitle\":\"Journalist\",\"description\":\"Dr. Ana Grabundzija is a Zagreb-bred writer with an academic background in anthropology. 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