Chinese ‘Criminals Used Digital Yuan to Launder Money’ – Prosecutors

Chinese authorities have announced the successful shutdown of a criminal gang that used digital yuan wallets to launder money. The gang was reportedly operating in the Yuecheng District of Shaoxing, Zhejiang Province. The Shaoxing Public Security Bureau, after being alerted by a bank employee who noticed suspicious activity on an e-CNY wallet, arrested and detained seven individuals on fraud charges. The police discovered that the wallet was being used to collect funds for groups of overseas fraudsters. The gang used the high privacy functions of digital yuan transactions to their advantage, believing it would be challenging for law enforcement to investigate the funds. The group managed to launder approximately $70,000 using e-CNY wallets. In their operation, the police confiscated mobile phones, computers, and other equipment, along with freezing over $3,370 worth of funds in digital yuan wallets and bank accounts. Authorities have warned the public about participating in private digital yuan exchange transactions for profit, emphasizing the potential for fraud and property loss. This incident highlights the increasing concern over digital yuan-related crime in China. In a separate case, criminals were convicted for exploiting CBDC exchange functions at an ATM to steal a substantial amount of cash reserves.