Chinese Police Investigates A USDT OTC Merchant Who Received Black Money from Scam
Recently, a USDT OTC merchant from OKEx was investigated by Chinese police as he received black money from a scam.
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, which led to the cross-provincial investigation of the merchant. At present, the platform, police, and the OTC merchant are continuing to cooperate in the investigation.
The scammer makes friends through the Internet with the victims to induce them to invest in stock or gambling. Recently, a series warnings have been launched by Huobi that when a user initiates a high-risk asset withdrawal, Huobi will reject the withdrawal for a single time, and users who are highly suspected of cheated by scam will be restricted from the OTC buying function.
Several crypto Chinese OTC traders have been listed in the “punishment list” of China’s central bank, and all bank cards under their name have been suspended from Non-OTC trading. Some crypto OTC accounts have reportedly been put on a “blacklist” maintained by the PBoC and are forbidden to use bank-issued cards for the next three years or conduct online transactions in the next five years, according to 8btc’s previous report.
Concealing the proceeds of crime is the most easily implicated crime of crypto OTC merchants, that is, if they know that the money to buy their cryptocurrency is from the crime and still do business with the buyer, they will commit this crime.
According to an insider, if the OTC merchant really confirms that it was unintentionally received the black money, there may be some room for explanation.
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. It is also difficult for the exchange to guard against. In contrast, the Chinese banking system has more powerful risk control and user data. Therefore, it is more common in developed countries to find problems and control risks at the level of banks and payments.
At present, China’s banking system is also cracking down on money laundering, which is good news for crypto OTC merchants and exchanges, which can reduce the amount of block money flowing in and receiving.