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Chinese Criminal Network Busted for Digital Yuan Money Laundering Scheme

In a landmark case, the People’s Procuratorate of Yuecheng District, Shaoxing, has cracked down on a criminal gang involved in laundering money through digital yuan in a sophisticated international operation.

The intricate scheme, uncovered in a report by Mpaypass, involved three individuals – Yuan, Zhang, and Kou – who were found guilty of exploiting digital yuan accounts to cash out and conceal illicit proceeds.

Unveiling the Money Laundering Operation

The operation unfolded in August 2023 when Yuan stumbled upon a part-time job ad on social media, offering lucrative opportunities. Entranced by the promise of quick cash, Yuan took the bait and embarked on a journey of financial crime.

Under the guise of a commission-based endeavor, Yuan was tasked with cashing out vendors’ digital yuan wallets, earning a tidy sum of 0.8% for each successful transaction. The modus operandi involved purchasing cryptocurrency and transferring it as a deposit to the advertiser.

Once a willing merchant with digital yuan wallets was identified, Yuan would relay the e-CNY receiving QR code to the advertiser, who would subsequently transfer the funds to the merchant. In return, the merchants would levy a service fee, returning the remaining amount to Yuan in banknotes.

Expanding the Illicit Enterprise

As the operation gained momentum, Yuan, unable to resist the allure of easy money, roped in his girlfriend, Zhang, and friend, Kou, enticing them with promises of lucrative returns. In a bid to scale their criminal enterprise, Yuan offered a cut of 50 yuan for every 10,000 yuan they helped launder, amplifying the scope of their illicit activities.

However, with limited options for cash-outs and the risk of detection looming large, the gang resorted to discreet communication channels via unregulated messaging apps from overseas to evade law enforcement scrutiny.

Legal Ramifications and Sentencing

The nefarious activities of the gang were laid bare in court, leading to their conviction and sentencing. The trio received fixed-term imprisonments ranging from one year and four months to seven months, accompanied by fines for concealing and disguising the proceeds of crime.

This landmark crackdown serves as a stark reminder of the authorities’ unwavering commitment to combatting financial crime, underscoring the grave consequences awaiting those who seek to exploit digital currencies for illicit gains.

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