The Tongliang Court in China has issued sentences to 21 individuals, including key figures involved in a $300 million USDT money laundering case.
This extensive crypto money laundering case unfolded from November 2020 to late April 2021, with its focal point on the actions of the principal defendants, Jiang Moumou and Zheng Moumou.
Jian and Zheng enlisted 19 other individuals to execute the money laundering operation, with each member having well-defined roles and responsibilities within the scheme.
Jiang Moumou has been sentenced to six years and three months in prison and fined 500,000 RMB (approximately $68,000) for his involvement in concealing the proceeds of criminal activities and illicit funds.
Zheng Moumou, another central figure in the case, has received a prison sentence of six years and a 500,000 RMB fine.
The 19 other individuals involved in the case have been handed fixed-term imprisonment sentences, which vary from one to two years and six months, along with monetary fines.
The Gang Used USDT to Launder Illicit Funds
To evade detection, the group employed tactics such as bypassing online trading platforms and conducting transactions at prices that significantly deviated from the prevailing market rates.
Their strategy involved gathering stablecoin USDT, which was converted from the proceeds of various online criminal activities, including fraud and online gambling, carried out by other individuals involved in criminal enterprises.
These unlawfully acquired funds were funneled through offline Bitpie collection wallets and subsequently sold on virtual currency trading platforms.
In an effort to legitimize their transactions, the group concocted justifications such as fund withdrawals for projects and wages for migrant workers. This enabled them to facilitate cash withdrawals at bank counters in multiple provinces and cities, including Chongqing, Sichuan, and Shanghai.
Over $300 Million Were Transfered to Overseas Entities
The cash amounts for each withdrawal varied, ranging from hundreds of thousands to several million yuan.
Once the cash was obtained, it was carefully packed into trolley cases and backpacks, prepared for transportation.
Subsequently, the funds were transported by air to destinations in Fujian Province, specifically Xiamen and Anxi, where they were handed over to designated recipients. Each cash transfer amounted to tens of millions of yuan.
The immense scale of the operation became evident when it was disclosed that the group had moved over 2.25 billion yuan (equivalent to $300 million) to overseas entities using this method.
Their total profits from this intricate money laundering scheme surpassed a remarkable 22.62 million yuan.