According to an exclusive report by crypto journalist WuBlockchain, Chinese police recently detained and investigated several top executives of offshore cryptocurrency exchanges, such as CTO, CHO, for allegedly providing funds payment and settlement services for gambling websites.
The journalist has not yet shared the names of the exchanges in question.
According to the news, online gambling funds transferred directly or indirectly to offshore exchanges last year exceeded 7.6 billion USDT. Among these, small and medium-sized exchanges had a higher percentage of hedge funds than large exchanges, possibly due to differences in risk management capabilities between platforms.
These exchanges are mostly established by Chinese nationals based in Dubai or Singapore, but most of their employees are based in China.
The work is part of China's ongoing efforts to curb illegal activities involving cryptocurrencies, such as money laundering, fraud, and tax evasion. Although China has banned domestic cryptocurrency exchanges and initial coin offerings (ICOs) since 2017, some offshore platforms continued to operate and serve Chinese customers.
*Not investment advice.