Former Cryptocurrency Exchange Manager Sentenced to 10 Months in Prison for Operating an Illegal Exchange
On June 27, according to sources from Lianhe Zaobao, a 34-year-old man named Xie Jiajie was involved in operating an unlicensed cryptocurrency exchange owned by Liu Hanquan. In just 23 days, Xie Jiajie managed 430 transactions with a total value of over 35 million yuan (approximately 5.3 million USD). The case ended with the arrest and sentencing of Xie to 10 months in prison for serious legal violations.
Crimes Defined Through the Electronic Currency Legal System
Xie Jiajie faces two counts of violating the Payment Services Act and one count related to laws on Corruption, Drug Trafficking, and Serious Crimes (seizure of benefits). This individual partially pleaded guilty during the hearing before the official sentence was handed down on June 26. The court's decision emphasizes the strictness in handling criminal acts in the cryptocurrency sector.
Business Model and Illegal Behavior of the Group
Sir Money Changer (SMC) is a licensed family business specializing in currency exchange and cross-border remittance services. The company is managed by Mr. Mohammad and his wife. Since June 2021, SMC has expanded its operations to Geylang.
However, Liu Hanquan proposed to rent a business license for a fee of 14,000 yuan/month to independently operate the remittance sector. He self-recruited staff and used the name SMC to contribute to the reserve fund and later reimburse costs. Since September 2021, business activities including cross-border remittance and Tether (USDT) trading were conducted without reporting to the Monetary Authority of Singapore (MAS) or providing transaction reports.
Evasion Actions and Consequences
After the incident was discovered, Liu Hanquan fled to Cambodia and erased his cryptocurrency wallet, and he has not yet been arrested. This behavior shows the sophistication in manipulating hot wallets, as well as the difficulty in tracing illegal cross-border digital asset transactions.
The lessons from this case warn cryptocurrency investors about the potential risks from opaque platforms without regulatory oversight. Violating cryptocurrency trading regulations can lead to severe penalties and significant asset loss. Smart investing, choosing licensed exchanges, and complying with the law are prerequisites for protecting digital assets.
Source: https://tintucbitcoin.com/nam-bi-an-10-thang-tu-doi-tien-trai-phep/
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