The top stories from the Chinese cryptocurrency sphere this past week include: Chinese police investigate a usdt OTC merchant who received black money from a scam, China’s Shenzhen distributed 10 million RMB in digital yuan for the public as an allowance, former CEO of Xunlei gets charged with misappropriating company’s capital in illegal cryptocurrency speculation……

Chinese police investigate a usdt OTC merchant

A USDT OTC merchant from OKEx was investigated by Chinese police for facilitating a deal that involved $73,500 of illicitly gained funds.

The police found that about 500000 Chinese yuan from a scam flowed into OKEx, then the money was transferred into cryptocurrency through an OTC merchant, The exchange, authorities and the trader himself are “continuing to cooperate in the investigation”.

The money laundering way of the scam is after receiving the legal tender, the scammer will transfer it to the crypto exchange through bank cards and Alipay. OTC trading is a way to facilitate a deal directly with an exchange or an OTC desk—without the trade appearing on the exchange’s order book. This method is often used to execute especially large transactions and avoid the subsequent price movement of an asset.

China’s Shenzhen distributed 10 million RMB in digital yuan

On October 12th, Shenzhen became the first Chinese city to officially issue Digital Currency Electronic Payment (abbreviated as DCEP, also known as the Digital Yuan), the state-developed digital currency to its citizens.

The pilot was funded by Shenzhen’s Luohu District, and the money was distributed equally to 50,000 recipients through lottery. Residents can use the money at 3,389 designated merchants, including restaurants, supermarkets, gas stations, metro stations, department stores, and other businesses in Luohu District within next week.

The Shenzhen campaign is the latest and most important event to date in China’s major push towards digitalizing its currency, in order to achieve further globalization of RMB and reduce the country’s international dependence on US dollars, according to PBOC, China’s central bank.

Former CEO of Xunlei gets charged with misappropriating company’s capital in illegal cryptocurrency speculation

Xunlei, a Nasdaq-listed cloud computing, and blockchain company based in China is at the center of a controversy after the company announced that its former CEO, Chen Lei, was under police investigation for dereliction of duty and embezzlement. Lai is also accused of misappropriating tens of millions of yuan over the past year in illegal cryptocurrency speculation.

The news about Chen’s alleged embezzlement and fraud shook the company, whose stock price kept rising throughout the summer despite the overall bad market conditions. Xunlei’s stock price dropped nearly 8% yesterday after the popular online streaming and software company announced the news about Chen’s investigation.