#Chinese ‘Criminals Used Digital Yuan to Launder Money’ – Prosecutors
Chinese law enforcement authorities claim to have dismantled a criminal gang involved in money laundering using digital yuan wallets. Operating in the Yuecheng District of Shaoxing, Zhejiang Province, the gang was reportedly exposed after a bank employee noticed unusual transaction activity on a merchant's e-CNY #Wallet and alerted the police. Seven individuals were arrested on fraud-related charges. The gang allegedly exploited the privacy features of digital yuan transactions, making it challenging for law enforcement to investigate the laundered funds. The criminals reportedly deceived hotel owners in various cities to accumulate digital yuan tokens, claiming they could receive an 8% commission by converting the tokens to cash. The police froze over $3,370 in digital yuan wallets and bank accounts, preventing the laundering of approximately $70,000. Authorities have warned the public against participating in private digital yuan exchange transactions for profit, emphasizing the fraudulent nature of such activities. This incident follows earlier warnings about the rise of digital yuan-related crime in China, including recent convictions related to the exploitation of #CBDC exchange functions on an #ATM .
Source - cryptonews.com