In a striking example of illegal cryptocurrency operations, three young men from Jianhu County were sentenced for circumventing China’s stringent foreign exchange regulations. Following an investigation published by COINOTAG News on December 10, these individuals executed over 650 transactions amounting to nearly 30 million yuan, utilizing cryptocurrency as a conduit for illicit foreign exchange trading. The Jianhu County Procuratorate found them guilty of illegal business practices, leading to prison sentences ranging from one and a half to five years, alongside hefty fines.
The primary instigator, Lin, aged 25, turned to cryptocurrency as a means of financial reinvention due to his struggles in securing stable employment. Initially lured by tales of quick wealth in the volatile crypto market, he partnered with classmates to engage in cryptocurrency arbitrage. Notably, their operations involved buying Tether on international platforms and exchanging it for RMB at a profit, ultimately breaching regulations designed to maintain the stability of China’s financial system.
Prosecutorial officials emphasized that their operations effectively exploited the unique attributes of cryptocurrency, which allowed them to conduct cross-border exchanges without proper oversight. This clandestine trading not only undermined the integrity of China’s financial market but also distorted crucial economic metrics, prompting significant government concern over financial stability and regulatory compliance.