Chinese authorities have busted a clandestine $1.9 billion underground banking empire, with Tether’s USDT stablecoin at its heart.
Operating within the bustling city of Chengdu, this covert network facilitated the exchange of foreign currencies under the cloak of anonymity. But the long arm of the law caught up with 193 suspects spread across 26 provinces, signalling the end of their illicit reign.
The operation, which began its clandestine activities in January 2021, extended beyond mere financial transactions, and into smuggling medicine, cosmetics and investment assets overseas.
Authorities have also shut down two key hubs of this shadowy enterprise in Fujian and Hunan. They froze assets worth a staggering $20 million, dealing a crippling blow to the financial infrastructure of the underground USDT banking operations.
Despite China’s stringent stance against crypto-related activities, this bust cites the persistent ingenuity of traders in circumventing regulatory barriers.
Kyros Ventures’ report sheds light on the staggering statistic that 33.3% of Chinese investors hold multiple stablecoins, solidifying their status as global players in the crypto arena.