Police authorities in China have carried out over 1.100 arrests, during the latest round of crackdowns on criminal groups providing money laundering services to telecom fraudsters. The Ministry of Public Security announced on 9 June the fifth round of business Broken Card aimed at suppressing gangs carrying out criminal activities in cyberspace.
In particular, Card Broken focuses on fraud in the telecommunications network, including the sale of telephones, payment cards and money laundering services through China and across borders.
The Ministry specifically pointed out that the participants Coin farmers, in which accomplices or members of criminal groups facilitate the money laundering through cryptocurrencies, in order to avoid the control of law enforcement in the country.
Coin farmers are said to sign up for different cryptocurrency exchanges and create personal accounts. In addition, they buy or sell cryptocurrencies based on the instructions and the money given to them. The digital currency is then sent to wallets controlled by gang members.
In return for their activity, farmers receive commission between 1,5% and 5%. The ministry says the high illegal income attracts large numbers of people to participate, causing serious social harm.
This operation focused, in this fifth round, on the criminal chains of these activities, dismantling at least 170 criminal groups. As part of this effort, law enforcement authorities have taken action in provinces such as Beijing, Hebei and Sanji.
In all, the operation resulted in the disbandment of about 15.000 gangs, while 311.000 people suspected of involvement have been arrested, according to the ministry.
China has taken a hard line on cryptocurrencies, blocking such transactions and warning that trade is disrupting the "economic and financial system".
While individuals are still allowed to hold cryptocurrencies, three state-funded economic authorities have recently issued a joint warning, reminding citizens that cryptocurrencies cannot "play a role in its economic activities". China».
Source of information: zdnet.com