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Chinese Police Arrest Group For $1.7B Crypto Scam

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Chinese authorities based in Tonglio, Mongolia announced the arrests of 63 individuals involved in a huge money laundering scheme.

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The scheme used the Tether stablecoin to generate $1.7 billion and facilitated the laundering of over $1.7 billion.

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The statement by law enforcement states that the investigation started when deposits spiked to over 10,000,000 yuan at a local bank. This triggered the bank's anti-money laundering protocols.

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Chinese authorities confiscated a total of 130 million Chinese Yuan (rough $18.6 Million) in a series of raids.

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Chinese police claim that the group was organized by criminals via Telegram and recruited members to open crypto-exchange accounts.

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Due to China's strict crackdown on cryptocurrency, these exchanges likely took place overseas.

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Members would be rewarded with a commission depending on how much they could launder, and convert the USDT back to Chinese yuan.

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The illegal operation was started by the gang in May 2021. At the same time, the Chinese government imposed a broad ban on cryptocurrency, which included possible jail sentences for Chinese citizens who are found guilty of using cryptocurrency.

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The crackdown started in the name of reducing carbon emissions.

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Since then, the Chinese government has begun to roll out its digital currency, the yuan.

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Around the world, several countries, including the United States, Australia, China and Japan, have started to develop their digital dollar.

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