[China cracks down on cryptocurrency activities, RenrenBit founder sentenced to jail]
In a major crackdown on illegal cryptocurrency activity, China's Supreme People's Procuratorate sentenced Renrendai founder and Bitfinex minority shareholder Zhao Dong to seven years in prison. Zhao Dong faces legal sanctions for suspected illegal business activities and unauthorized foreign exchange transactions, demonstrating China's resolute attitude towards cracking down on illegal activities in the industry.
Zhao Dong is an important figure in the over-the-counter digital asset market. His case involves the joint crackdown on foreign exchange criminal activities between China’s Supreme People’s Procuratorate and the State Administration of Foreign Exchange. His sentencing is part of China's wide-ranging campaign against eight cases, focusing on international activities involving foreign exchange fraud and financial fraud.
China carefully investigated and tracked accounts linked to these criminal activities, and prosecutions relied on bank statements, communications records, confessions and witness statements. These cases reveal a new trend in foreign exchange crime, with criminals adopting more sophisticated methods to evade regulation, including using virtual currencies and social media to conduct illegal financial activities.
China's Supreme People's Procuratorate and the State Administration of Foreign Exchange said they are committed to financial security, and this cooperation aims to create a high-pressure environment, combat cross-border illegal financial activities, and ensure the robustness and integrity of the financial system.
According to reports on December 24, a report circulated on Chinese social platforms about the discovery of illegal banks using cryptocurrencies to bypass foreign exchange controls. Xu Xiao, an official at the Qingdao branch of the State Administration of Foreign Exchange, said the underground bank illegally exchanged RMB and other foreign currencies by purchasing and selling virtual currencies through overseas platforms. The scheme involved the transfer of more than $2.2 billion (approximately 15.8 billion yuan) through more than a thousand bank accounts in 17 regions.