[Market Pulse] 🚨 Shanghai Busts $905M Illicit USDT Network!

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Shanghai’s court exposed a $905M (6.5B CNY) illegal stablecoin network run by Yang and Xu, using Tether (USDT) to evade China’s 2021 crypto ban. The duo split forex transactions into domestic and international ops via 17 shell companies—Yang lured global clients, while Xu managed local deals, dodging oversight.

This crackdown underscores China's push to curb illicit cross-border flows, putting stablecoins in the spotlight.

Despite the news, USDT's $161 billion market cap held firm, showing market resilience.

However, this serves as a reminder:

- Stablecoins are under regulatory scrutiny in China

- Financial stakeholders, including exchanges and DeFi platforms, may intensify KYC/AML measures to avoid regulatory violations.

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👉 This incident highlights the fragile balances between crypto innovation and regulatory compliance.

Do you think stablecoins should be treated as foreign exchange instruments-not just digital tokens?

How can global platforms (Binance, Uniswap, Tether...) strike the right balance between user freedom and legality?

Share your perspective below! 👇