TechFlow news — According to reports by Sina Finance, the Supreme People's Procuratorate and the People's Bank of China have jointly released six typical cases of money laundering offenses, including cases involving the use of virtual currencies for money laundering. From August 2015 to October 2018, Chen Moubo operated a digital currency trading platform and issued virtual tokens, deceiving customers into depositing and trading on the platform through false advertising, fabricating transaction data, and concealing funding shortfalls by restricting large withdrawals, falsely claiming theft by hackers, and otherwise delaying or even refusing investor redemption requests.
Using virtual currencies for cross-border exchange to convert criminal proceeds and gains into foreign fiat currencies or assets has emerged as a new method of money laundering. The amount of money laundered is calculated based on the actual funds paid to purchase the virtual currency. Although Chinese regulators have explicitly banned cryptocurrency issuance, financing, and exchange activities, differences in regulatory policies toward Bitcoin and other virtual currencies across countries and regions allow for free conversion between virtual and fiat currencies via overseas virtual currency service providers and exchanges. As a result, virtual currencies have become a new tool for cross-border money laundering.
