Chinese authorities uncover illegal cryptocurrency operation worth $296 million

Six individuals were arrested by police in Panshi City, Jilin, for operating an “underground bank.”

Chinese authorities identified a clandestine financial institution offering illicit currency exchange services, dubbing it an “underground bank.”

China News Service reported that the operators took advantage of the anonymity and simplicity of cross-border transfers offered by cryptocurrency to provide their service.

Chinese authorities apprehended six individuals involved in conducting an illicit currency conversion scheme utilizing cryptocurrency, with transactions totaling around 2.14 billion yuan ($296 million), as reported by China News Service on Weixin.

The clandestine operation, dubbed an “underground bank,” was brought to light by the Public Security Bureau of Panshi City, Jilin, according to the state-owned news outlet.

By leveraging the anonymity and cross-border nature of over-the-counter virtual currency trading, the operation utilized domestic accounts to receive and transfer funds, facilitating exchanges between the yuan and the South Korean won.

The clientele encompassed Korean procurement agents, e-commerce enterprises, import/export firms, and various other entities, as outlined in the report.

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