According to Bitcoin Magazine, on April 28, the Web3 Radar public account reported that on April 16, the Public Security Bureau of the Town County successfully cracked a new type of 'online fraud + offline cash withdrawal' telecom network fraud case, dismantling a criminal chain involving multiple provinces and cities, arresting four suspects, and recovering 196,000 yuan involved in the case, which also broke cases in various parts of the country involving over 7.5 million yuan. This case is a new type of telecom fraud using a 'virtual currency investment + cash withdrawal at home' composite model.
On October 18, 2024, the Criminal Investigation Team of the Town County Public Security Bureau received an early warning from a local bank that resident Liu had engaged in large abnormal cash withdrawal activities, suspected to be a victim of telecom fraud. The police immediately activated the 'Police-Bank Interaction' mechanism, and the Criminal Investigation Team formed a joint task force with the Yongle Police Station to conduct investigations. Anti-fraud police and auxiliary officers locked onto the victim after data analysis, but faced strong resistance from the individual. Task force officers conducted targeted anti-fraud publicity at the individual's home, ultimately breaking through the individual's psychological defenses.
According to Liu's statement, after meeting a brave, handsome, and gentle boyfriend online, he cared for Liu every day until one day he said, 'I know of a foolproof investment; I’ll help you earn money.' Under the gentle 'trap,' Liu has handed over a total of 900,000 yuan in cash to a cash withdrawal personnel claiming to be a 'virtual currency trader' in three installments. On the day of the incident, while preparing to withdraw 196,000 yuan again, Liu was intercepted by the police in time. The task force quickly set up surveillance and arrested three 'runners' including Liu 1, Liu 2, and Yu at the scene when they came to withdraw cash, confiscating a vehicle involved in the case, five mobile phones used in the crime, and all the cash waiting to be transferred. After the suspects were brought in, they refused to confess to their criminal acts. However, after the task force police and auxiliary officers traveled to Henan, Hubei, Anhui, and other places to collect substantial evidence, the suspects confessed the truth in the face of evidence. It has been confirmed that this gang collected cash from victims in Zhengzhou, Nanyang, and Kaifeng in Henan Province, as well as in Shiyan and Yichang in Hubei Province.
As the case was further investigated, the task force discovered that the gang used two concealed money laundering models. In addition to the 'direct current' model where victims directly hand over cash, there was also a complex money laundering chain using other victims as 'bridges' for funds. With the assistance of the police in Xiangyang, Hubei Province, the main suspect Zhang was arrested at the end of March 2025. Investigations revealed that this criminal network spanned six locations across Henan and Hubei provinces, with the amount of money involved exceeding 7.5 million yuan. Four suspects have been criminally detained for suspected concealment and hiding of criminal proceeds. The case is currently undergoing further investigation, and the tracing of related funds is progressing in an orderly manner.
According to the case-handling police officer, this type of new crime integrates online script fraud with offline cash delivery, forming a 'virtual currency money laundering closed loop'. Fraudsters first disguise themselves as successful individuals on social platforms to gain trust, then use 'excessive returns on virtual currency' as bait to lure victims to withdraw cash from banks, which is then collected in person by a driver disguised as a 'currency dealer'. Ultimately, the stolen money is transferred through virtual currency transactions. It is noteworthy that in some cases, victims are forced to become 'money laundering bridge points', meaning victim A transfers money to victim B's account, and B withdraws the cash and hands it over to the driver. This type of 'bridging' behavior can expose participants to legal accountability.
