Chinese Authorities Crack Down on $55 Million Tether Money Laundering Ring

In a major crackdown on financial crimes, Chinese authorities have apprehended 21 members of a significant Tether money laundering ring.

The ring was involved in processing a staggering 380 million yuan ($55 million) in USDT across four provinces. The operation came to light in April when an abnormal flow of funds was detected in the bank account of a resident named Mouyue Zhao in Qinshui County.

An extensive investigation led the police to discover an organized group running a USDT over-the-counter (OTC) trading ring, assisting criminals in laundering illegal funds.

In April, authorities in Qinshui County stumbled upon suspicious activity involving the bank account of Mouyue Zhao. The irregular flow of funds raised red flags and prompted further investigation.

It was soon uncovered that a well-organized group had been operating a USDT over-the-counter (OTC) trading ring since October 2021, allowing criminals to launder their ill-gotten gains.

The criminals in the Tether money laundering ring would purchase USDT at lower prices and then sell it at a profit through WeChat groups.

This method provided a seemingly legitimate channel for criminals to convert their illegal funds into virtual currency and further obfuscate the origins of the money.

WeChat, being a widely used social media platform in China, offered a convenient and discreet medium for these transactions.

Chinese police left no stone unturned in their pursuit of justice. The investigation led them to track down the suspects across six cities spanning four provinces, including Guangxi, Jiangxi, Henan, and Anhui.

Determined to bring the criminals to justice, the authorities dispatched 50 officers to form three arrest teams. The operation culminated in the arrest of all 21 suspects involved in the money laundering ring.

As part of the operation, the police also seized critical evidence, including over 40 mobile phones, 200,000 yuan in cash ($28,000), and 1 million yuan in USDT ($140,000).

Upon interrogation, all the Chinese suspects confessed to their involvement in using Tether to facilitate money laundering operations for criminals.

In China, convicted money launderers face a maximum prison sentence of 10 years. The seriousness of the crime highlights the determination of the Chinese authorities to combat financial fraud and protect the integrity of the country’s financial system.