Chinese police uncover $2 billion bankruptcy operation

Chinese police discovered underground banking activities worth 1.9 billion USDT, which will ban Chinese cryptocurrency.

On May 15, the Chengdu City Public Security Bureau announced in a press release that the activities of a large underground bank had been uncovered.

This was the culmination of the investigation, which began in November 2022 when the Longquanyi District Branch of the Chengdu City Domestic Security Bureau discovered the operation.

It was revealed that the Factory was established in January 2021 and was mainly used to smuggle medicines, cosmetics and real estate investments abroad.

Since the investigation began, authorities have arrested 193 suspects in 26 provinces and destroyed two ground operations in Fujian and Hunan.

The backbone of this operation was the stablecoin Tether (USDT), which was used to circumvent the country’s currency regulations and facilitate illicit currency transactions.

To uncover the money that allows the organization to carry out illegal activities. It gave them the freedom to control their names and the intermediaries in the traditional payment system.

Crypto Activity Continues Despite Crypto Ban

The Chinese government has taken a strong stance against crypto, banning its adoption and banning crypto-related activities with sanctions.

In 2021, China stopped exchanging money and foreign currency. But citizens have found ways to bypass regulations and access crypto assets through other means.

Decentralization has led to continued crypto trading in China. Following the ban on decentralized exchanges, the use of decentralized financial protocols increased significantly.

Some people reject the ban on using private networks (VPNs) to hide their activities and transactions for anonymity purposes.

Thanks to these efforts, China ranks second in the world in product quality. 33. According to Kyros Ventures’ report, 3% of investors own more than one coin.

Bitcoin ETF offers legal crypto to China

Despite the crypto ban in Hong Kong, Bitcoin and Etherium Exchange Traded Funds (ETFs) have recently provided investors with legal access to crypto assets.

Yimei Li, CEO of AMC in China, said these ETFs represent a significant step forward in facilitating private investment for investors in mainland China.

Although crypto trading is banned in mainland China, Li said the official launch of the ETF will provide “new opportunities” for investors in mainland China to “participate in this process” in the future. ”

This has proven to be the case with Chinese investors’ stakes in ETFs. As a result of this decision, Bitcoin ETFs gained $230 million in assets under management (AUM) in the week of their launch.

This development shows that China is interested in facilitating the use of money, despite the restrictions imposed by the Chinese government.