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Report: China plays a major role in digital currency crimes


Chinalysis says in a new report that Chinese-owned wallets transferred more than $ 2 billion in digital assets to addresses linked to illegal activities between April 2019 and July 2021.

to the Report Cryptopotito reports that over the past two years, more than $ 2.2 billion worth of digital currency has been transferred from Chinese addresses to addresses linked to illegal activities such as scams and Darknet transactions. It should not be forgotten that Panzi designs are more popular in China than in other countries.

The accounts to which the Chinese transferred this amount of capital, in addition to the activities we mentioned earlier, also engaged in activities such as money laundering, drug trafficking, and other illegal activities. The inflow of these accounts from dirty money has been more than $ 2 billion.

Despite the large volume of capital inflows into accounts related to criminal activities, this figure shows a significant decrease compared to the two-year period in other countries. According to Chinalis, as the popularity of large-scale panzing schemes has declined around the world, capital inflows into criminal activity accounts have also declined.

It should not be forgotten that China is a hub for fentanyl smuggling, and many smugglers use digital currencies to lose track of their transactions. The Chinese also use virtual currencies and digital currency exchanges for money laundering. Some criminal businesses in China are also based entirely on digital currency trading platforms.

Chinalis adds that China has taken steps to counter these activities. The arrest of Zhao Dong, the founder of several over-the-counter digital currency trading platforms, is part of China’s crackdown. He was convicted a few months ago of complicity in cybercrime.

Despite the high crime rate in digital currencies and the use of these currencies in criminal activities, the country has imposed heavy penalties for such cases.

Late last year, the operator of the Panzi Plus Token scheme, which received $ 2.25 billion in digital currency from users, was sentenced to 11 years in prison.

As the plan was the largest Panzi plan implemented in China, Chinese officials described its condemnation as a great victory. In addition to imprisonment, the two key elements of the Panzi scheme were fined $ 18,000 and $ 913,000, respectively.

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