A massive fraud case involving the conversion of illegally obtained Tether (USDT) into Chinese Yuan (RMB) has shaken the Chinese city of Tongliang and resulted in the conviction of 21 people.
$300 Million Fraud Case Revealed
The fraud involving RMB 2.25 billion (equivalent to $307 million) exemplifies the growing interplay of cryptocurrencies and illicit activities.
According to the bulletin published by the court, the two main perpetrators, identified by the surnames Jiang and Zheng, directed the activity with the participation of 19 more accomplices.
Using a decentralized wallet called Bitpie, similar to Metamask, the group transferred their ill-gotten USDT to local exchanges on virtual currency platforms to convert it into RMB.
They then withdrew the fiat currency in various cities in China, offering false explanations such as project payments and workers' wages to justify the transfers.
Court records reveal that Jiang received a profit of RMB 22.62 million (about $3 million) for his role in the operation.
As the legal process progressed, the group was found guilty of masking and concealing the proceeds of crime. This led to Jiang being sentenced to six years and three months in prison, along with a 500,000 RMB fine.
Similarly, Zheng was sentenced to the same fine and six years behind bars.
*This is not investment advice.
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