China Prosecutes 3032 in Crypto Money Laundering Crackdown Stocks Plunge
1min read In 2024, the Chinese government intensified its efforts to combat crypto money laundering, resulting in the prosecution of nearly 3,032 individuals. This crackdown is part of a broader initiative to address financial fraud and crimes within the country's financial ecosystem. The Supreme People’s Procuratorate's work report, presented at the Third Session of the 14th National People’s Congress, highlighted the severity of the issue and the government's resolve to tackle it.
Crypto money laundering involves criminals converting illicit funds into anonymous cryptocurrencies, mixing them with others to obscure their origin, and then transferring the money through multiple crypto addresses. The final step is to cash out the funds, often by pretending they came from legal crypto trading or investments, or using them to purchase high-value products. This method makes it extremely difficult for authorities to trace the original source of the funds.
The crackdown on crypto money laundering is just one aspect of China's broader efforts to combat financial fraud and crimes. In 2024, around 25,000 people were arrested for various financial offenses, including securities crimes such as financial fraud and insider trading. The government's actions also targeted specific cases, such as those involving the Evergrande Group and the Zhongzhi Group, where 42 and 49 individuals were prosecuted, respectively. These efforts underscore the Chinese government's commitment to maintaining the integrity of its financial system.
China's approach to cryptocurrency regulation is characterized by strict prohibitions rather than regulation. The People’s Bank of China plays a central role in enforcing these restrictions, with support from various other agencies responsible for financial stability, cybersecurity, and law enforcement. This multi-agency approach ensures that cryptocurrency-related activities are closely monitored and regulated, reducing the risk of illegal transactions.
The crackdown on crypto money laundering has also involved international cooperation. One notable example is the disruption of the Garantex cryptocurrency exchange, which was implicated in facilitating money laundering activities. This operation, conducted in collaboration with authorities from other countries, highlights the global effort to combat financial crimes. The disruption of Garantex and the arrest of individuals involved in cryptocurrency-related fraud schemes, such as the founder of the financial services firm 'Gotbit,' demonstrate the government's commitment to addressing these issues on a global scale.
In addition to the arrests, 