In China, law enforcement authorities exposed an illegal forex group that used crypto exchanges to circumvent currency restrictions, local media .
According to available information, a man surnamed Jin developed an illegal scheme to obtain foreign means of payment. He created a network of underground organizations that operated in 17 provinces and municipalities.
The Forex group acquired digital assets within the country, after which they sold them through foreign cryptocurrency exchanges. This allowed the organization to bypass capital controls and obtain foreign currency.
Xu Xiao, an inspector at the Qingdao State Administration of Foreign Exchange, said Jin and his accomplices carried out daily transactions amounting to 3 million yuan (about $418,000). It was the suspicious activity in the bank accounts that attracted the attention of law enforcement officers.
During a raid to suppress illegal activities, the police seized $28,000 worth of cryptocurrencies. The funds were stored in Tether, Litecoin and other digital assets.
In total, the forex group sold assets worth $2.2 billion, law enforcement officials said.
It is worth noting that according to Chinese laws, citizens of the country do not have the right to exchange foreign currency worth more than $50,000 per year without special permission. Bypassing these restrictions is considered a money laundering crime.
Let us remind you that we previously wrote that a Chinese resident received a fine of $145,000 for using a VPN.
