Shandong Shouguang police uncovered a money laundering case involving the use of virtual currency, with the amount involved exceeding 9 million yuan
Shouguang Public Security Bureau in Shandong Province successfully solved a money laundering case. A criminal gang processed 17 bank cards within a month and a half, withdrew more than 50 times from major banks in Shouguang, involving more than 9 million yuan. Currently, the police have arrested 8 criminal suspects, and the case is under further investigation. After interrogation, the gang contacted their foreign upstream through an overseas encrypted chat software called "Paper Plane", used their own bank cards to receive funds related to suspected telecommunications network fraud and other illegal and criminal activities. They then withdrew cash through bank counters, ATM machines, etc., bought virtual currency USDT offline, transferred the virtual currency to the upstream, and achieved the purpose of seeking illegal interests through low buy and high sell, which is suspected of helping information network crime activities and concealing criminal gains.
UK law enforcement agencies have seized $1.7 billion in Bitcoin suspected of money laundering
UK law enforcement has seized $1.7 billion worth of Bitcoin. Earlier, a former restaurant employee named Jian Wen attempted to use the Bitcoin to purchase a luxury home in London worth about $30 million, but the purchase was unsuccessful due to their inability to explain the source of the encrypted assets. It is reported that Jian Wen became a British citizen in 2018 and is suspected of being recruited to assist Zhimin Qian in money laundering, accused of representing Zhimin Qian in converting Bitcoin into cash, luxury goods, and real estate.
Woman accused of helping fraudsters launder around £5bn using Bitcoin
42-year-old Wen Jian was charged with three counts of money laundering for allegedly assisting a Chinese woman named Yadi Zhang in laundering money, as reported by the Financial Times of the UK. According to prosecutors, Zhang stole about £5 billion from over 128,000 Chinese investors through wealth management fraud between 2014 and 2017, then converted the money into Bitcoin and arrived in London in 2017 under a false identity. Wen is accused of helping Zhang convert some of the Bitcoin into cash, jewelry, other luxury items, and property.
Industry Players Express Concerns Over FinCEN's Proposed Crypto Mixing Services Regulations
The Financial Crimes Enforcement Network proposed a new regulatory regime for crypto mixing services in October, which could potentially treat privacy tools as a threat to money laundering and impose new recordkeeping rules on those using them. The industry had a chance to provide feedback through a comment period that closed last week, with some expressing concerns that the proposed rule would infringe on personal rights and drive legitimate crypto use offshore. The Financial Intelligence Unit of Bangladesh has also expressed concerns about the proposed rule to regulate self-hosted crypto wallets. FinCEN will review the comments before deciding whether to finalize the proposal or take other action. Additionally, the UK government has published the results of a public consultation into a digital pound, while the European Banking Authority will hold a hearing on prudential regulation details within the Markets in Crypto Asset regulatory framework.
Shaoxing police in China uncovered the first case of money laundering using digital renminbi accounts
The Shaoxing police have cracked the first case of using digital RMB accounts for money laundering in Zhejiang, and 7 people involved in the crime of aiding and abetting have been arrested. The bureau stated that on September 16th of last year, a bank employee reported to the police after noticing "very unusual" transaction activity on a merchant's electronic RMB wallet. The police immediately set up a special working group to investigate. It was ultimately determined that the wallet was used to raise funds for an "overseas fraudster group." The police added that about 20 mobile phones and "computers and other devices" were seized, and funds worth more than $3,370 were frozen in digital RMB wallets and bank accounts. The organization used digital RMB wallets to process about $70,000 worth of laundered funds.
Four Charged in $80M Crypto Investment Scam Money Laundering Scheme
Four individuals in Los Angeles have been charged by the U.S. Department of Justice for allegedly laundering over $80 million of victims' funds obtained through crypto investment scams. The scheme involved opening shell companies and bank accounts to conceal the proceeds of fraudulent activities, including "pig butchering" scams. The accused face charges of conspiracy to commit money laundering, concealment money laundering, and international money laundering. Two of the accused, Lu Zhang and Justin Walker, could face up to 20 years in prison if convicted.
Former Binance CEO Changpeng Zhao to Face Prison for Failing Anti-Money Laundering Protocols, Says CFTC Chair
Former Binance CEO Changpeng Zhao is expected to face prison time after pleading guilty to failing to maintain adequate anti-money laundering protocols for the world's largest crypto exchange, according to CFTC Chair Rostin Behnam. The CFTC, Justice Department, and Treasury have imposed over $4 billion in fines on the criminal and civil side. Zhao, a citizen of two other nations, has been ruled to stay in the US until his sentencing in February 2022, as he poses a serious risk of flight. The government argues that Zhao has minimal ties to the US and a residence in a country without an extradition treaty with the US.
Elizabeth Warren Gains More Support for Digital Asset Anti-Money Laundering Bill
US Senator Elizabeth Warren has gained more support for her Digital Asset Anti-Money Laundering Act, which aims to enforce the same money laundering rules on the crypto industry as the traditional financial system. The bill would extend Bank Secrecy Act responsibilities, including Know-Your-Customer requirements, to crypto wallet providers, miners, validators, and other network participants. Pro-crypto lobbying groups have criticized the legislation, with some calling it a ban on crypto assets in the US. The bill is currently being considered by the Senate Committee on Banking, Housing, and Urban Affairs.
Opinion: Warren’s digital asset anti-money laundering bill may be unconstitutional and unlikely to pass
Daniel Kuhn, the deputy editor of "Consensus" magazine, wrote that the digital asset anti-money laundering bill signed by Senator Elizabeth Warren (Democrat from Massachusetts) and several members of the Senate Banking Committee may be unconstitutional and unlikely to pass. The reason is the same as many reasons why governance in the United States is often obstructed: partisan politics, infighting, and deadlock. The main goal of the bill is to attack cryptocurrency as a trend, as well as the narrow issue of cryptocurrency being used to fund terrorism, money laundering, and other criminal activities.
The Digital Asset Anti-Money Laundering Act is an opportunistic, unconstitutional assault on cryptocurrency self custody, developers, and node operators
The bipartisan Digital Asset Anti-Money Laundering Act, introduced today by Sens. Warren and Marshall, is the most direct attack on the personal freedom and privacy of cryptocurrency users and developers we’ve yet seen. It would force anyone who helps maintain public blockchain infrastructure, either through software development or validating transactions on the network, to register as a Financial Institution (FI). As FIs, they would be obligated to:
