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Chinese police arrest 21 in $54M USDT money laundering probe

In accordance with native stories, police in China’s northern Shanxi province have uncovered an alleged Tether (USDT) cash laundering scheme that led to 21 arrests.

In accordance with China’s nationwide broadcasting service CCTV, the scheme, which used the US dollar-backed stablecoin USDT, is estimated to have generated greater than $54 million for the alleged criminals.

The police investigation alleges that the suspects, working in six completely different cities throughout 4 provinces, had been concerned in buying discounted USDT via over-the-counter crypto buying and selling companies beginning in October 2021.

They’re stated to have made unlawful income by promoting these tokens at inflated costs via WeChat and cash laundering platforms. Over the course of about three years, it generated roughly $54.8 million.

The alleged conspiracy got here to mild after the police seen an uncommon circulate of cash within the account of an individual. This raised suspicions of potential “operating factors”, a sort of cash laundering through which an individual makes use of their very own financial institution card or on-line cost methodology to gather cash from others, then transfers it.

Along with the arrests, police seized 40 cellphones and greater than 1 million yuan ($138,000) in USDT, in addition to greater than 200,000 yuan in money from the accused’s accounts.

All 21 suspects have allegedly confessed to cash laundering for cybercriminals with the stablecoin, CCTV reported. This matter is below investigation.

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