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Chinese authorities have destroyed a $295 million clandestine cryptocurrency exchange
Chinese authorities have destroyed a $295 million clandestine cryptocurrency exchange
Chinese authorities have cracked down on a clandestine bank involved in illegal currency exchange operations between the Chinese yuan and the South Korean won. The operation, which used cryptocurrency, is estimated to have handled at least 2.14 billion yuan (about $295.8 million).
Second According to a state media report, local police in Jilin Province, located in northeast China, the criminal group used domestic bank accounts to receive and transfer funds, using over-the-counter cryptocurrency transactions. Their services were primarily required by various entities, including South Korean purchasing agents, cross-border e-commerce platforms, and import and export trading companies, to facilitate currency exchanges between the Chinese yuan and the South Korean won.
Six suspects responsible for facilitating illicit activities in both China and South Korea have been arrested. The suspects allegedly took advantage of cryptocurrencies, which allowed for the anonymity and decentralization of transactions, to carry out illegal foreign currency exchange operations.
China has long maintained strict capital control measures, prompting people to explore alternative avenues to circumvent these regulations. Cryptocurrencies have often been used as a way to circumvent these rules, offering a decentralized and less regulated platform for conducting financial transactions.