- Chinese authorities have uncovered an underground financial organization involved in a $2.2 billion illegal forex scheme.
- Law enforcement officials revealed that the group utilized cryptocurrency exchanges to acquire digital assets and foreign currency.
Reports from local media in China reveal that law enforcement authorities have exposed an illicit forex group that exploited crypto exchanges to evade currency restrictions.
According to the reports, a man named Jin orchestrated an unlawful operation to gain access to foreign payment methods. He established a network of underground organizations operating across 17 provinces and municipalities.
Within the country, the forex group acquired digital assets, which they subsequently sold via foreign cryptocurrency exchanges. This method allowed the organization to bypass capital controls and acquire foreign currency.
Inspector Xu Xiao from the Qingdao State Bureau of Foreign Exchange stated that Jin and his associates conducted daily transactions with a turnover of 3 million yuan (approximately $418,000). The suspicious activities conducted through their bank accounts raised the authorities’ suspicion.
During a raid to crackdown on illegal activities, law enforcement seized cryptocurrencies worth $28,000, which were stored in Tether, Litecoin, and other digital assets.
Law enforcement officials estimate that the forex group sold assets amounting to $2.2 billion in total.
It should be noted that Chinese law prohibits citizens from exchanging foreign currency worth more than $50,000 per year without special permission. Evading these restrictions is considered a money laundering offense.
Previously, we reported on a Chinese resident who was fined $145,000 for utilizing a VPN.