A significant underground money exchange case involving 15.8 billion yuan ($2.45 billion) and 17 provinces and municipalities has been solved by Chinese officials in Qingdao, Shandong. The suspect, Jin, is accused of offering illicit currency exchange services through regulated bank accounts. Large sums of money belonging to Jin were found to have been moved to several bank accounts under the control of Li, another suspect in the investigation, according to the police.
Li was identified as a merchant with a focus on the illicit dealing of virtual currencies after more inquiry. Li assisted Jin in using a foreign virtual currency trading site to convert a sizable sum of money into cryptocurrencies like Tether. The investigators moved quickly after gathering substantial evidence, seizing virtual currencies at the location that were worth over 2 million yuan ($310,000) in Tether and Litecoin. The prosecutor’s office has now received the case for examination and possible prosecution.
Virtual currencies do not have the same legal standing as physical currency in China, according to national legislation, according to the State Administration of Foreign Exchange (SAFE). Dealing with virtual currency for business purposes is regarded as unlawful financial conduct. Furthermore, purchasing and selling foreign currency must take place at specific sites in China; doing so outside of these areas is regarded as illicit foreign exchange dealing, which can carry criminal penalties in extreme circumstances.