TechFlow news, July 1, according to the Jing'an Procuratorate, the Shanghai Jing'an District People's Procuratorate initiated public prosecution in accordance with the law against a criminal gang that used virtual currency for cross-border matching to illegally convert foreign exchange. The gang used overseas "private banks" as a guise, providing illegal currency exchange services to high-net-worth clients with needs for overseas property purchase, immigration, and study abroad funds through an "RMB - Virtual Currency - Foreign Exchange" matching model, charging a 3% currency exchange service fee. The case spanned 3 years with an involved amount exceeding 200 million RMB. On June 10, 2026, the court held a session and announced the verdict in court. 9 involved individuals were subject to differentiated handling, among whom 5 were sentenced to fixed-term imprisonment ranging from two years and six months to six years, and fined between 300,000 yuan and 1.5 million yuan, while the other 4 were given discretionary non-prosecution handling due to minor circumstances. Currently, the State Administration of Foreign Exchange Shanghai Branch has initiated administrative case filing investigations against the non-prosecuted personnel, building a "criminal accountability + administrative punishment" cross-border financial governance closed loop.
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