Coinfeeds Daily → 21 Individuals Sentenced in $300 Million Crypto Fraud Case in China

21 Individuals Sentenced in $300 Million Crypto Fraud Case in China

Published: Nov 02, 2023 | Last Updated: Nov 02, 2023
Howard Kane

Court finds group guilty of using Bitpie wallet to transfer proceeds from online fraud and illegal casinos

Massive Crypto Fraud Case in China

In a recent development, a court in China has sentenced 21 individuals for their involvement in a massive fraud case amounting to $300 million. The group was found guilty of using a decentralized wallet, Bitpie, to facilitate the transfer of proceeds from online fraud and illegal casinos. The funds, denominated in Tether (USDT), a popular digital asset, were converted to Chinese Yuan (RMB).

Modus Operandi of the Fraudsters

The fraudsters used a sophisticated method to carry out their illegal activities. They utilized the Bitpie wallet to transfer the proceeds from their fraudulent activities and illegal casinos, which were denominated in Tether, to Chinese Yuan. The conversion from USDT to RMB was carried out on virtual currency platforms. Following this, they withdrew the fiat currency in different cities under false pretenses.

Legal Consequences

The court found the group guilty of their charges and imposed severe penalties. The individuals involved in this large-scale fraud have been sentenced to prison terms and are also required to pay hefty fines. The exact details of the prison terms and fines have not been disclosed.

Tether's Popularity Among Fraud Rings

Tether, also known as USDT, is a popular digital asset frequently used by fraud rings, especially in Southeast Asia. The source of the Tether used in this particular case was not specified. However, its use in such fraudulent activities raises concerns about the potential misuse of cryptocurrencies.

Key Takeaways

This case highlights the potential misuse of cryptocurrencies in illegal activities. It underscores the need for stringent regulations and monitoring of cryptocurrency transactions to prevent such fraudulent activities. Furthermore, it serves as a reminder for individuals and businesses to exercise caution while dealing with digital assets.

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