Massive Crypto Crackdown: Panshi Underground Bank’s 2 Billion Yuan Transactions Exposed

• Chinese authorities have busted a large-scale underground bank operation involving virtual currency, with transactions exceeding 2.14 billion yuan ($317 million USD).
• The operation facilitated illegal currency exchange between the Chinese yuan and the South Korean won, exploiting the anonymity of virtual currencies.
• Six suspects have been arrested, with a significant number of bank cards and related criminal tools seized.

Chinese police have cracked down on a major underground banking operation involving virtual currencies, revealing over 2.1 billion yuan in illegal transactions and leading to the arrest of six suspects.

Underground Bank Operation Busted in Panshi City

Authorities in Panshi City, Jilin Province, have successfully dismantled a large-scale underground bank operation involving virtual currencies. The total transaction amount exceeded 2.14 billion yuan, equivalent to approximately $317 million USD. The operation, involving six suspects, facilitated illegal currency exchange between the Chinese yuan (RMB) and the South Korean won (KRW) by exploiting the anonymity and decentralized nature of virtual currencies.

Investigation and Arrests

The investigation began after the Panshi City Public Security Bureau’s Economic Investigation Brigade discovered suspicious activity linked to two individuals, Jin Moudong and Shen Mou. The investigation revealed a high volume of daily transactions, numerous customers, and patterns consistent with underground banking. Following a comprehensive investigation, police apprehended Jin Moudong, Shen Mou, and other suspects. Authorities also seized a significant number of bank cards and related criminal tools.

Illegal Foreign Exchange Transactions

The group conducted illegal foreign exchange transactions through various methods, including using domestic accounts for fund transfers, over-the-counter (OTC) virtual currency trading, and Korean won settlements. These activities catered to clients such as Korean purchasing agents, cross-border e-commerce businesses, and import/export companies seeking to exchange RMB and KRW.

Conclusion

The remaining suspects, Chen Mouguang, Luo Moutao, He Mouda, and Zheng Mouyu, were apprehended through further investigation and evidence collection. This case highlights the growing challenge of illegal financial activities facilitated by virtual currencies. It also demonstrates the effectiveness of law enforcement agencies in China in combating such operations.