Catenaa, Sunday, February 16, 2025 – China authorities have uncovered a massive underground banking operation that laundered over CNY 1 billion ($136 million) through cryptocurrency, leading to multiple arrests and exposing the increasing use of digital assets for illicit cross-border transactions.
The network, which operated across several provinces, used cryptocurrencies to bypass China’s strict financial regulations. Law enforcement began monitoring the operation in June 2024 after spotting suspicious activity involving foreign exchange transactions and fund transfers between personal and corporate accounts.
The investigation, which was initiated by authorities in Yanbian, Jilin, resulted in the arrest of seven primary suspects, including the alleged leader, Zhang Liang, who turned himself in.
Zhang, who initially used underground banks for personal purposes, expanded his operation into a larger illicit currency exchange network. By working with labor agencies and intermediaries, he facilitated unauthorized fund transfers across China and overseas. The network spanned 10 provinces and involved over 20 arrests.
