Public Security Bureau of Panshi City in Jilin Province has recently cracked down on an illegal operation involving underground banks and virtual currencies. This operation, which amounted to approximately 2.14 billion yuan (around $300 million), resulted in the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
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Exploitation of Virtual Currencies
The suspects took advantage of the anonymous and decentralized nature of virtual currencies to conduct unlawful exchange operations between the Chinese Renminbi (RMB) and the South Korean Won. This allowed them to facilitate large-scale money laundering activities across borders.
Uncovering the Scheme
Authorities from the Panshi City Public Security Bureau’s Economic Investigation Brigade discovered crucial leads that indicated the involvement of Jin Moudong, a resident of Jilin, and his accomplice, Shen Mou, in conducting currency exchange businesses in both China and South Korea. They lured unsuspecting individuals into fraudulent transactions before fleeing back to China.
Police Operation
After gathering substantial evidence, a task force was formed to investigate the financial activities, social connections, and organizational structure of the criminal gang. Jin Moudong, Shen Mou, and their associates were successfully apprehended. The police operation also led to the seizure of a significant number of bank cards and tools used in the commission of the crimes.
Illegal Activities Revealed
The investigation revealed that the criminal network engaged in various illegal activities, such as using domestic accounts to receive and transfer funds, conducting over-the-counter (OTC) trades of virtual currencies, and settling transactions in Korean Won. Their operation catered to Korean purchasing agents, cross-border e-commerce platforms, and import-export trading companies, providing them with the means to exchange RMB for Korean Won and vice versa.
Conclusion
The successful crackdown on this illegal operation demonstrates the commitment of authorities to combat money laundering activities involving virtual currencies. By dismantling criminal networks engaged in such activities, law enforcement agencies aim to maintain the integrity of financial systems and prevent illicit financial flows.
