TechFlow, July 20 — According to the China Times, the Pudong New Area People's Court in Shanghai recently disclosed a case involving illegal cross-border foreign exchange transactions using stablecoins. Yang Mou, Xu Mou, and others controlled domestic shell company accounts to provide clients with stablecoin services enabling illicit cross-border fund transfers, amounting to 6.5 billion RMB in illegal foreign exchange trading over three years.
The criminal group used USDT as a medium and adopted a cross-border "matching" method to provide illegal currency exchange services. Domestic clients paid RMB into designated accounts, while the overseas members simultaneously transferred foreign currency from overseas accounts to the clients' foreign accounts, typically charging service fees ranging from 1% to 3%.
