- Chinese Police has discovered a large fraud case involving the unlawful conversion of Tether into Chinese Yuan (RMB).
A large fraud case involving the unlawful conversion of Tether (USDT) into Chinese Yuan (RMB) has shaken the Chinese city of Tongliang and resulted in the conviction of 21 persons.
A $300M Fraud Case has been Revealed
The RMB 2.25 billion (equal to $307 million) fraud shows the growing connection between cryptocurrency and illegal activity.
According to the court’s bulletin, the two primary criminals, named as Jiang and Zheng, directed the action, which included 19 other accomplices.
The group transferred their ill-gotten USDT to local exchanges on virtual currency platforms using Bitpie, a decentralized wallet akin to Metamask.
They then withdrew the fiat cash in numerous Chinese cities, justifying the transfers with fraudulent excuses such as project payments and worker wages.
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According to court records, Jiang profited RMB 22.62 million (about $3 million) for his role in the operation.
As the legal process advanced, the organization was found guilty of concealing and masking criminal proceeds. As a result, Jiang was sentenced to six years and three months in prison, as well as a 500,000 RMB fine.
Zheng was sentenced to the same fine and six years in prison.