Significant Ruling on Virtual Currency Crimes
In a significant ruling, the Hanjiang District People’s Court in Fujian Province, China, has adjudicated a criminal case centered on the illicit use of virtual currency, specifically USDT (Tether). The accused, including Yan, Zheng, and Lin, orchestrated an underground foreign exchange trading operation that operated outside of legal boundaries.
Illegal Operations and Financial Transactions
They allegedly attracted clients via international chat applications and engaged in unauthorized currency exchanges between RMB and foreign currencies, utilizing ‘U coins’ as a medium. The total volume of transactions conducted through bank accounts linked to the group surpassed an astounding 13.3 billion RMB, with illegal foreign exchange dealings alone amounting to approximately 25.62 million RMB.
The investigation further revealed that these individuals managed to withdraw over 478 million RMB from various banks across Fujian Province. Their modus operandi involved purchasing ‘U coins’ and subsequently transferring these to various criminal wallets, effectively laundering funds obtained through cross-border criminal activities.
Evidence and Court Proceedings
Lin, one of the suspects, initially rejected all charges against him. However, the court probed into critical evidence, notably three voice recordings from a co-defendant’s phone, which were subjected to voiceprint analysis by a court-commissioned forensic institute. This examination unmistakably linked Lin’s voice to the recordings, strengthening the prosecution’s case against him.
During the proceedings, despite having previously maintained his innocence, Lin ultimately changed his plea to guilty following the presentation of compelling evidence.
As disputes about the case’s details arose, the court facilitated discussions between law enforcement and judicial bodies to achieve clarity. Consequently, the court found Yan, Zheng, Lin, and a total of 15 co-defendants guilty of engaging in illegal business practices and aiding illicit online activities.
Sentencing and Implications
Sentences ranged from 8 months to 3 years of imprisonment, coupled with financial penalties imposed on the convicted individuals, reflecting the court’s firm stance on financial crimes related to digital currencies.
