Regulators Uncover Global Crypto Money Laundering Web in High-Profile Case

Chinese margin financier Song Shijie has faced a series of legal actions in recent months, culminating in the surrender of nearly 200 million yuan in assets and the freezing of cryptocurrency assets linked to alleged money laundering. The 51-year-old founder of Yueda, a Beijing-based margin financing platform, has been under investigation by Chinese authorities since 2019 for manipulating stock prices and trading volumes. In 2021, he fled China and relocated to the United Kingdom, where he was subsequently targeted by the National Crime Agency (NCA) in 2023 over suspected illegal financial activities.

According to a July 2025 statement by the NCA, Song surrendered £16.7 million (approximately $22.5 million) in assets, including a luxury London residential property and six apartments, as part of a settlement. This marked a significant development in a case that has spanned several years and multiple jurisdictions. In parallel, Anhui securities regulators concluded an investigation in 2024, finding that Song had engaged in stock manipulation and ordered him to pay 22 million yuan in penalties and confiscate funds. Despite these orders, Song remained at large, prompting regulators to publish a notice in a national newspaper to compel compliance.

The case has also intersected with Song’s involvement in cryptocurrency-related activities. By 2025, Chinese authorities had identified him as a suspect in a money laundering case involving approximately $10 million in cryptocurrency. This has further complicated asset recovery, as China’s legal framework lacks a clear route for selling crypto assets involved in criminal cases. Law enforcement agencies have faced challenges in dealing with digital currencies, which often operate outside traditional financial systems and require coordination with overseas exchanges that have varying levels of cooperation.

Meanwhile, the UK and U.S. have both intensified regulatory scrutiny of crypto assets and anti-money laundering (AML) compliance. In the UK, the government has proposed amendments to the Money Laundering Regulations, including stricter requirements for crypto firms. These changes, which lower the threshold for change-in-control notifications from 25% to 10%, aim to close regulatory loopholes and respond to emerging risks. The proposed regulations also enhance due diligence requirements for correspondent banking relationships and clarify the scope of high-risk jurisdictions.

In the U.S., the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued joint guidance in September 2025, clarifying that registered exchanges may facilitate spot trading in certain crypto assets. This move reflects a broader effort to integrate digital currencies into the mainstream financial system, contrasting with the more cautious stance of UK regulators. Industry leaders have welcomed the SEC-CFTC statement as a step toward legitimizing crypto trading, although legal experts remain skeptical about the practical implications for unregistered platforms.

Song’s case highlights the growing international coordination in combating financial crime, particularly in the realm of digital assets. The collaboration between Chinese, UK, and U.S. authorities underscores the global nature of financial regulation and enforcement. As jurisdictions continue to refine their frameworks for crypto compliance, high-profile cases like Song’s may serve as precedents for future legal actions. The outcome of his case, including the potential repatriation of seized assets and the handling of cryptocurrency holdings, will likely influence regulatory strategies in the years ahead.

Source:

[1] Exclusive: Chinese Illegal Margin Financing Mastermind Surrenders UK Assets (https://www.caixinglobal.com/2025-09-04/exclusive-chinese-illegal-margin-financing-mastermind-surrenders-uk-assets-102358974.html)

[2] UK drafts changes to Money Laundering Regulations (https://financialregulation.linklaters.com/post/102l2qm/uk-drafts-changes-to-money-laundering-regulations)