china

The Leshan Intermediate People's Court has delivered a landmark verdict, sentencing cryptocurrency trader Wan Mouyuan to 13 years imprisonment for operating an illegal foreign exchange scheme involving 234 million yuan ($32.2 million) worth of USDT transactions. This ruling marks one of China's most severe penalties for crypto-related financial crimes to date and signals intensified enforcement of the country's strict capital controls.

Case Details & Legal Precedent
- Operation Mechanism: Wan's network facilitated cross-border forex transactions by converting RMB to USDT, then to USD, bypassing China's $50,000 annual forex limit
- Judicial Rationale: Court classified the activity as "illegal business operation" under Article 225 of China's Criminal Law
- Broader Impact: Sets binding precedent for future crypto-facilitated forex cases nationwide

Market Context & USDT's Role
Despite the conviction, Tether (USDT) maintains price stability at $1.00, with:
- $163.8B market cap
- $110.5B daily volume (per CoinMarketCap)
The case highlights ongoing regulatory tensions as:
1) USDT remains critical for global crypto liquidity
2) Authorities increasingly target its use in circumventing financial controls

Industry Implications
- Chinese Traders: Likely to shift to OTC platforms with stricter KYC
- Exchanges: Pressure to monitor USDT-forex arbitrage patterns
- Policy Outlook: May accelerate China's CBDC (digital yuan) adoption for traceable cross-border settlements

Legal Expert Commentary:
"This verdict removes any ambiguity – using crypto to bypass forex controls now carries existential risk in China. We'll see either sophisticated compliance adaptations or migration of such activities offshore."
— Prof. Zhang Wei, Shanghai University of Finance and Law

The Leshan ruling follows China's July 2025 Anti-Money Laundering Amendments, which expanded surveillance of crypto-to-fiat conversions. With USDT involved in 63% of China's crypto crime cases last year (per National Anti-Fraud Center data), analysts expect further crackdowns on P2P trading platforms.
#china #Court #forexcase #newscrypto #Follow

Nvidia has placed a massive order for 300,000 H20 chips from Taiwanese manufacturer TSMC, just days after Donald Trump lifted the export ban on chip sales to China. The move immediately triggered renewed interest from Chinese tech giants, which had previously been racing to secure access to H20 chips.
According to Reuters, Nvidia decided to restart production of these chips—specifically designed for the Chinese market—as demand quickly outpaced its existing stockpile of 600,000 to 700,000 units. While H20 chips are less powerful than Nvidia’s high-end H100 and Blackwell series, they still fully support the company’s software stack and comply with the revised U.S. export regulations.

Why H20? And Why Now?
The H20 chip was developed in response to earlier U.S. sanctions banning the export of advanced GPUs to China. Though less computationally intensive, H20 chips offer enough performance for artificial intelligence and machine learning applications.
Nvidia CEO Jensen Huang, who recently visited Beijing, told Chinese clients that the company would only resume production if they committed to significant purchases. Even then, he warned, restarting the supply chain could take up to nine months.

Chip Sales Tied to Rare Earth Trade Talks
The export ban reversal wasn’t a coincidence—it was part of broader Trump administration negotiations with China over rare earth magnets, a strategic commodity that Beijing has been restricting amid rising trade tensions. These magnets are crucial to U.S. industries from defense to electric vehicles.
In return for allowing H20 exports, the U.S. hopes to secure more consistent supplies of rare earth elements. However, critics in Washington argue that even a scaled-down chip like the H20 could enable China to strengthen its AI infrastructure and compete with the U.S. in strategic technologies. Concerns remain about how these chips may be used once they cross the border.

China’s Demand Is Surging
Tech giants like Alibaba, Tencent, and ByteDance had already bulk-ordered H20 chips before the April ban. Now, with demand only growing, Nvidia is asking Chinese buyers to submit updated documentation and forecasts, including end-client projections, to help speed up the approval process through the U.S. Department of Commerce.
Reportedly, Nvidia has already sold over 1 million H20 chips. With the new batch of 300,000 units on the way and more in reserve, the company appears confident that Chinese demand is strong enough to justify the commercial and political risks—though exports won’t move forward until official export licenses are granted.

#NVIDIA , #artificalintelligence , #china , #Technology , #AI

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

On Monday, July 28, U.S. Trade Representative Jamieson Greer dampened optimism surrounding the ongoing trade negotiations between the United States and China. While he welcomed the willingness of both global powers to engage in dialogue, he warned that any outcome this week is likely to bring only “modest progress” rather than a major breakthrough.
Greer emphasized that his role is to closely monitor the implementation and evolution of existing agreements. The third round of high-level negotiations, held in Sweden, aimed to ease tensions triggered by Trump’s aggressive tariff policy.

Hopes for a Deal? Bessent Remains Confident
While Greer cooled expectations, U.S. Treasury Secretary Scott Bessent remains optimistic. He believes both countries will find common ground and extend the current ceasefire in the tariff war. This “pause” in tariff exchanges is set to expire on August 12 and its extension is seen as crucial for calming global economic uncertainty.
Trump’s tariffs on Chinese goods triggered strong retaliatory measures from Beijing, sparking a trade war that nearly rocked the global economy. Greer, however, maintains that the U.S. continues to prefer a path of constructive dialogue: “Our talks with the Chinese side are always friendly and productive,” he said.

The U.S. Firmly Defends Its Position
Greer also noted that this is the third high-level meeting between the two nations in three months—signaling a certain consistency and willingness to seek a solution. However, he stated that the U.S. is not seeking to sign new trade deals unless necessary. The goal, he explained, is to establish agreements that directly benefit American trade—not to negotiate for negotiation’s sake.
According to Greer, Trump still places full confidence in his tariff system and favors it over entering into new agreements. This position may shape the future direction of U.S. trade policy—not only with China but also in talks with the EU and Japan, who are seeking exemptions ahead of the August 1 tariff deadline.

#usa , #china , #TradeWars , #TRUMP , #Tariffs

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A former executive of a Chinese tech company has been sentenced to 14 years and 6 months in prison for embezzling company funds worth 140 million yuan ($19.5 million) and laundering them through cryptocurrency mixers and offshore exchanges.
The man, identified by the surname Feng, was responsible for approving incentive programs on a popular short video platform. Prosecutors say he conspired with external vendors to submit fake claims and redirected corporate funds to accounts under his control, which were then converted into Bitcoin and other digital assets.

🔹 Sophisticated Crypto-Based Money Laundering
The funds were funneled through eight foreign exchanges and concealed using coin mixing tools—services that anonymize blockchain transactions by pooling and redistributing digital assets. However, investigators managed to trace the transactions and recover over 90 BTC, worth approximately $11 million at current prices.
Authorities emphasized that despite increased transaction complexity, mixing tools do not guarantee complete anonymity. Using advanced forensic analysis, including pattern recognition, timestamp correlation, and statistical clustering, officials were able to partially reconstruct the flow of funds and link foreign crypto exchanges to domestic bank accounts.

🔹 Growing Risks in China’s Tech Industry
Feng was one of seven individuals convicted in the embezzlement scheme. The others received prison sentences ranging from three to over 14 years. The case was highlighted in a recent report from prosecutors in Beijing’s Haidian District, which analyzed 1,253 corruption cases in tech companies between 2020 and 2024.
The report points to a growing trend: a shift from traditional bribery to more sophisticated fraud involving cryptocurrency, data misuse, shell companies, and digital laundering. Sectors such as e-commerce and artificial intelligence were flagged as high-risk due to weak internal oversight.
Chinese law enforcement agencies are increasingly turning to blockchain analysis tools to investigate cryptocurrency-related crimes and enforce anti-money laundering laws. Firms like Salus Security, Beosin, and SlowMist are helping authorities track crypto movements and uncover digital fraud with growing precision.

#CryptoCrime , #MoneyLaundering , #china , #DigitalAssets , #CryptoSecurity

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“