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September 26, 2022

China Authorities Take Down Crypto Criminals

Local media in China stated on September 25 that the Public Security Bureau of Hengyang County had detained 93 individuals suspected of being engaged in the laundering of 40 billion RMB via the use of cryptocurrency.

As soon as the different municipal authorities came to the conclusion that what looked to be a money laundering operation was indeed taking place, they collaborated to form a task force that would deal with the situation.

Lai Moumou and Zhang Moumou are said to have been the masterminds of the operation. And it is believed that they were involved in a wide range of illegal endeavors while utilizing the CBDC.

The police stated:

“The criminal gang headed by Lai Moumou and Zhang Moumou is suspected of using digital RMB, digital RMB accounts, and virtual currency to provide illegal fund settlement services for overseas gambling, electronic fraud and other criminal activities. The amount of money is huge, and there are many people involved in the case, which are distributed in 13 provinces across the country.”

The authorities say that the criminal organization laundered its earnings by first purchasing cryptocurrencies using illegal cash and then selling the cryptocurrencies in exchange for U.S. dollars. The authorities believe that the illegal funds originated from either fraudulent telecom transactions or illegal gaming.

The digital yuan was used by criminals to launder a total of 200 million RMB, according to another local story. This indicated that the Chinese police were also responsible for busting a money laundering operation in Fujian.

According to the information provided in the report, Zhang Moumou and Lai Moumou were in charge of leading the illegal activity. They utilized the country’s digital currency for a variety of unlawful purposes. This includes supplying financing for gambling, fraud, and other similar acts.

Also Read:  $130 Billion in Crypto Owned By Russians

84% Of All Blockchain Patents Are From China

In related developments, according to the most recent statistics that were made public by an official representing China’s government. China is responsible for 84 percent of all blockchain applications that have been submitted everywhere around the globe.

Within a year of President Xi Jinping’s promotion of the blockchain sector, Chinese enterprises have already submitted 4,435 patents related to the technology.

According to the findings of another piece of research, between the years 2015 and June 2021. China submitted almost sixty percent of the world’s blockchain patent applications. This was followed by the United States and South Korea.

According to South China Morning Post, China has the highest number of blockchain patent applications. But the approval rate is extremely low, with only 19% of the total number of applications being approved. This is despite the fact that China has the highest number of blockchain patent applications.

The Chinese government has chosen to stay out of the cryptocurrency sector. Despite this, the government in Beijing has shown support for the underlying blockchain technology. Since the nation has made significant efforts over the years to encourage the implementation of blockchain technology. The high rate of blockchain patents should not come as a surprise.