Sichuan Busts 21 in 3.9B Yuan Virtual Currency Fraud

A criminal gang conducted illegal foreign exchange business through virtual currency matching, involving a total amount of over 3.9 billion yuan. The Sichuan Province Public Security Bureau publicly released 10 typical cases of economic crimes, including the "2•6" illegal operation (forex) case. In this case, since August 2021, Fan, He, Chen, and others in Chengdu successively established studios, technology consulting companies, used social networking software to conduct targeted customer diversion, colluded with domestic agents of overseas currency exchange institutions, and provided RMB cross-border illegal remittance services through methods such as overseas gift card cash out and virtual currency wash trading.

The case successfully arrested 21 criminal suspects and is scheduled to conclude the investigation by December 2024 and transfer it for review and prosecution. This case highlights the growing concern over the use of virtual currencies in illegal activities and the need for stricter regulations and enforcement to prevent such crimes. The involvement of social networking software and overseas agents in this scheme underscores the complexity and reach of modern criminal networks, which often operate across borders and utilize advanced technologies to evade detection.

The use of virtual currency matching in illegal foreign exchange business is a significant development in the realm of financial crimes. Virtual currencies, due to their decentralized nature and relative anonymity, have become a favored tool for criminals seeking to launder money or conduct illegal transactions. The case in Sichuan Province serves as a stark reminder of the potential risks associated with virtual currencies and the importance of vigilance in monitoring and regulating their use. The authorities' successful arrest of 21 suspects and the ongoing investigation demonstrate a proactive approach to combating financial crimes, sending a clear message to would-be criminals that such activities will not be tolerated.

The total amount involved in this case, over 3.9 billion yuan, is a substantial figure that underscores the scale and sophistication of the criminal operation. The methods employed, including the use of overseas gift card cash out and virtual currency wash trading, indicate a high level of planning and coordination among the suspects. The involvement of domestic agents of overseas currency exchange institutions further complicates the investigation, as it requires international cooperation and coordination to trace the flow of funds and identify all parties involved. The scheduled conclusion of the investigation by December 2024 and the transfer for review and prosecution mark a significant milestone in the case, as it brings the perpetrators closer to facing justice for their crimes.