đ„đ„đ„ â#OTC Kingâ Zhao Guilty of Unauthorized Crypto Operations, Says Chinese Legal Authority đ„đ„đ„
China's Supreme Procuratorate has unveiled details surrounding the seven-year prison sentence given to Zhao Dong, founder of RenrenBit, an over-the-counter (OTC) crypto trading desk. The sentence, disclosed on December 27, was based on convictions related to illegal business operations and unlicensed foreign exchange transactions. The crackdown on Zhao Dong, known as the 'OTC King,' was supported by substantial evidence, including bank records, communication logs, confessions, and witness statements. Despite claims that the actions were digital currency transactions, the prosecutor presented chat records as evidence, leading to a seven-year prison term and a 2.3 million Chinese yuan ($325,000) fine.
In a separate development on December 24, China's State Administration of Foreign Exchange uncovered an illicit forex ring operation leveraging cryptocurrencies to evade foreign exchange laws. Authorities seized around $28,000 (200,000 Chinese yuan) worth of digital currencies, including Tether and Litecoin. The investigation revealed a complex scheme involving over $2.2 billion (15.8 billion Chinese yuan) transferred to more than 1000 bank accounts across 17 regions.
These cases highlight the challenges faced by regulatory bodies in monitoring financial transactions in the dynamic digital currency landscape. Despite these challenges, China remains committed to fostering growth and innovation in the crypto and associated technologies sector. A significant illustration of this commitment is the $10 billion investment announced on December 28 by Chinese venture capital firm GBA Capital. The investment aims to drive #Web3 innovations , focusing on startups dedicated to virtual reality, the #metaverse , and non-fungible tokens (#NFTs ). This strategic funding initiative is expected to transform the Guangdong-Hong Kong-Macao economic area into a prominent meta-asset capital.
Source - Jimmy Aki @jimmy-akiÂ
Website - Cryptonews