1000 people have been arrested in China as part of a crackdown on fraud and cryptocurrency laundering.
ByShehryar Makhdoom | Published date:
People who participate in telecom scams use bitcoin platforms to transmit money to criminals. A countrywide assault on telecom and banking fraud has netted over 1,100 arrests.
The Ministry of Public Security (MPS) made an announcement on June 9th, labelled "Card Broken," to go against cyber-crime rings.
In specifically, Card Broken is dedicated to telecom network fraud, which includes fraud committed against the telecom network through selling phone cards, credit cards, and money laundering services.
The agency especially highlights "coin farmers" as people who assist criminals in laundering money through cryptocurrency to avoid law enforcement scrutiny in the country.
The operation now has its fifth leg. As a result, at least 170 supposedly criminal organizations have been decimated. Several provinces, including Beijing, Hebei, and Shanxi, have intervened.
As a result of the Broken Card operation, around 15,000 gangs and 311,000 alleged gang members have been busted as a result of the Broken Card operation
China has imposed strict trading restrictions, banning exchanges and calling for an end to bitcoin trade.
Three state-backed financial authorities recently issued a joint warning to remind the Chinese population that cryptocurrencies cannot play a part in Chinese financial transactions.
Coin farmers reportedly registered on various cryptocurrency exchanges and opened their own accounts. Cryptocurrency traders would trade based on the handler's instructions and the monies they're given. Virtual cash is then delivered to gang-controlled wallets and sent elsewhere.
Coin farmers would be paid a commission ranging from 1.5 percent to 5% in exchange for their efforts.
Illegal revenue attracts a large number of people, producing considerable social harm, the department contends.
Comment