Chinese Police Bust $2 Billion Tether Underground Banking Ring
Chinese authorities have announced the dismantling of a major underground banking syndicate accused of enabling illicit transactions valued at nearly $2 billion using Tether (USDT).
In a coordinated operation, law enforcement from Sichuan and Chongqing provinces apprehended 193 suspects across 26 Chinese provinces.
The gang allegedly utilized USDT to circumvent China’s foreign exchange regulations, facilitating the transfer of 13.8 billion yuan ($1.9 billion) overseas for criminal activities.
Authorities demolished two hideouts belonging to the syndicate in Fujian and Hunan in 2023, freezing 149 million yuan ($20.6 million) associated with the gang.
The syndicate is accused of a range of offenses, including financial fraud, drug-related crimes, smuggling, and export tax fraud.
READ MORE: North Korea Accused of Laundering $147.5 Million Through Crypto Platform
USDT has also been implicated in gold smuggling activities in Nepal, where it was used to pay smugglers transporting 33kg of gold into the country before returning to Tibet with cash, musk, and medicinal caterpillar fungus known as yarsagumba.
Furthermore, the United Nations has highlighted USDT’s role in a “parallel banking system” established by organized crime in Southeast Asia.
According to a UN report, online gambling platforms, particularly those operating illegally, have become popular avenues for cryptocurrency-based money laundering, particularly using Tether or USDT on the TRON25 blockchain.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
