China’s crackdown on cryptocurrencies has reached a new crescendo, with the nation’s Ministry of Public Security on Wednesday proclaiming it has arrested over 1000 people and shut down 170 gangs that provided crypto-linked money-laundering services.
At 10:00 on June 9, under the unified command of the Inter-Ministerial Joint Conference Office of the State Council’s Work on Combating New Types of Illegal and Criminal Telecommunications Networks, the nationwide “Card Broken” operation carried out the fifth round of centralized network collection. Beijing, Hebei, Shanxi, Liaoning, etc. 23 Public security organs in various provinces, autonomous regions, and municipalities simultaneously carried out network collection operations, and implemented centralized arrests of illegal and criminal gangs that used virtual currencies to provide transfer and money laundering services for telecommunications network fraud activities. As of 15:00 of the same day, more than 170 criminal gangs had been destroyed, more than 1,100 suspects had been arrested, and the net-closing operation had achieved initial results.
With the in-depth advancement of the “broken card” operation, the public security organs succeeded in destroying a large number of illegal criminal gangs selling “two cards” and confiscated a large number of bank cards used in telecommunications network fraud activities. The channels for the circulation of funds of the fraud gangs were greatly restricted. . In order to evade investigation and crackdown, fraudsters turned to use virtual currency to transfer funds involved in the case. Driven by illegal interests, some illegal criminals took the initiative to provide services to fraud gangs, helping scam gangs transfer and launder money by purchasing and exchanging virtual currencies, and become criminal accomplices. The Ministry of Public Security attaches great importance to this, and organizes special forces to study the characteristics of such illegal and criminal activities, and deploys public security agencies in Hangzhou, Shaoxing, Anhui, Hefei, Hunan, and Changsha, Hunan to carry out special cases and implement a full-chain attack. After careful investigation and investigation and evidence collection, the public security organs initially found out the criminal clues of nearly 1,000 related personnel. On the basis of a large number of illegal and criminal facts and evidence, on June 9th, the Ministry of Public Security deployed the fifth round of centralized network collection in the “Card Broken” operation, successfully eliminating multiple virtual currencies that provided transfer and money laundering services for telecommunications network fraud activities. The criminal gang has achieved significant results.
After investigation, such illegal criminal gangs usually organize personnel to register on various virtual currency trading platforms with personal bank cards and information, purchase and exchange virtual currencies in accordance with the requirements of fraud gangs, and become “coin farmers” who help them launder money. After the scam gang obtained the funds, they immediately transferred the stolen money to the bank card of “Bi Nong”. The “Bi Nong” then purchased coins on the virtual currency trading platform, and then repeatedly exchanged different currencies. The money is transferred to the virtual currency wallet address designated by the fraud gang. After completing the money laundering process, “coin farmers” can obtain “commissions” ranging from 1.5% to 5%. The high illegal income attracts a large number of people to participate, causing serious social harm.
The relevant person in charge of the Joint Office of the State Council said that all localities and departments will unswervingly adhere to the policy of severely cracking down in accordance with the law, innovate tactics, strengthen comprehensive governance, continue to carry out cluster campaigns and centralized network collection operations, and continue to promote the in-depth development of the “broken card” operation , Resolutely curb the high incidence of telecommunications network fraud crimes from the source. At the same time, the public security organs reminded the general public to increase their awareness of the rule of law and prevention, establish correct investment concepts, refrain from participating in any form of money laundering for telecommunications fraud gangs, and earnestly safeguard their legitimate rights and interests to avoid becoming accomplices to fraudsters.
It is understood that since the “Card Broken” operation was launched, the Ministry of Public Security has organized five rounds of centralized network collection operations by local public security agencies to illegally sell “two cards”, cross-border trafficking “two cards”, and provide transfer money laundering services for telecommunication frauds, etc. Illegal and criminal gangs launched a fierce offensive, accurately cracking down on the “two card” crime chain. Up to now, the “broken card” operation has eliminated 15,000 criminal gangs that illegally set up and sold “two cards”, arrested 311,000 suspects of illegal “two cards”, and controlled 18,000 illegal industry outlets and institutions, and achieved significant results. Effectiveness.
NB: This is machine translated from Chinese and corrected for grammar.