Crypto News – Underground Crypto Bank Busted in China for Illicit Yuan-Won Exchanges Worth $295 Million

Crypto News – Underground Crypto Bank Busted in China for Illicit Yuan-Won Exchanges Worth $295 Million

Crypto News – China recently dismantled an illicit banking operation that utilized cryptocurrency to illegally exchange the Chinese yuan for the South Korean won. According to a state media report released on Sunday by local authorities in Jilin province, six individuals were apprehended for their roles in the operation, spanning China and South Korea.

The report detailed that the suspects took advantage of the inherent features of cryptocurrency—namely its transactional anonymity and decentralization—to facilitate unauthorized currency exchanges. Investigations revealed that this criminal syndicate engaged in extensive over-the-counter cryptocurrency transactions, using domestic accounts to funnel and redistribute funds.

These illicit activities primarily served various business entities, including South Korean purchasing agents, cross-border e-commerce platforms, and import-export trading companies, enabling them to exchange currencies in defiance of China’s stringent capital control policies. This case highlights ongoing challenges in regulating the intersection of traditional finance and emerging digital currencies.