The Public Security Bureau of Panshi City in Jilin Province has successfully dismantled an illegal operation involving underground banks and virtual currencies. This crackdown, which involved approximately 2.14 billion yuan (around $300 million), led to the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
Actions by Jilin Province Authorities
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 illicit scheme allowed them to facilitate large-scale money laundering activities across borders, evading detection for a significant period.
Authorities became aware of the operation through the Economic Investigation Brigade of the Panshi City Public Security Bureau in Jilin Province. Their investigation uncovered crucial leads pointing to the involvement of Jin Moudong 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.
Seizing Assets and Apprehending Criminals
After gathering substantial evidence, the police discovered that the bank accounts linked to Jin Moudong and Shen Mou exhibited significant transaction volumes, consistent with illegal underground banking activities. This led to the formation of a task force in Jilin Province to further investigate the financial activities, social connections, and organizational structure of the criminal gang, resulting in the apprehension of the suspects and the seizure of a considerable number of bank cards and tools used in the commission of the crimes.
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Global Efforts Against Crypto Fraud
This crackdown comes amidst a broader international effort to combat crypto-related fraud. Before Jilin Province Actions, In a joint operation involving national authorities from Austria, Cyprus, and the Czech Republic, six individuals were arrested in connection with an online scam related to the sale of rights or tokens for a supposed new cryptocurrency. Eurojust and Europol supported the coordinated action, resulting in the seizure and freezing of assets totalling €2 million.
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In another recent case, Instagram influencer Jebara Igbara, known as “Jay Mazini,” was sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme.
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Additionally, Queensland Police took action against an alleged crypto investment fraud operating on the Gold Coast, resulting in the arrest and charging of four individuals, following an investigation led by the Financial and Cyber Crime Group Money Laundering Unit that began in July 2022.
