21 Arrested in China for $54M USDT Money Laundering Investigation
Authorities in China's Shanxi Province have arrested 21 individuals allegedly involved in a major Tether (USDT) money laundering scheme.
The scheme, estimated to have generated over $54 million, utilized the US dollar-backed stablecoin USDT to launder money, the country’s national broadcasting service CCTV reported on Tuesday.
According to police investigators, the suspects operated across four provinces and had been engaging in the purchase of discounted USDTs through over-the-counter crypto trading services since October 2021.
They allegedly made illegal profits by selling the tokens at inflated prices via social media and money laundering platforms.
These transactions amounted to a staggering 54.8 million USDT (equivalent to CNY 380 million) over a span of nearly three years.
During the arrests, authorities seized 40 cellphones, over 1 million yuan ($138,000) in USDT, and more than 200,000 yuan in cash from the suspects' accounts.
All 21 individuals reportedly confessed to the crime of laundering money for cybercriminals using the stablecoin. The case is currently under further investigation.
Money laundering through cryptocurrencies has become a significant concern for authorities worldwide.
The anonymous nature of transactions and the ease of transferring funds across borders make cryptocurrencies an attractive choice for criminals looking to legitimize illicit proceeds.
Back in April, the US Treasury revealed that North Korean hackers and scammers exploit loopholes in the decentralized finance (DeFi) space to launder money and hide criminal activity.
"The assessment finds that illicit actors, including ransomware cybercriminals, thieves, scammers, and Democratic People’s Republic of Korea (DPRK) cyber actors, are using
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