According to BlockBeats, Qingdao police are set to review and prosecute a case involving the use of the virtual currency USDT to aid cybercrime, with nine suspects apprehended and over 8 million yuan involved in the case.
In February, the Madian Police Station of Jiaozhou Public Security Bureau discovered that a fugitive suspect, Xue, involved in telecom fraud, had resurfaced in Jiaozhou. On February 24, officers arrested Xue and found suspicious messages on his phone indicating a partnership with another man. The chat records revealed that Xue had used his connections to register companies and open public accounts, which he then handed over to this man for use. These accounts often included the term 'study abroad' in their names, and Xue was promised compensation for his efforts.
The police suspected Xue was involved in other crimes and formed a special task force to investigate. Analysis of the transfer records containing 'study abroad' revealed that business licenses were used to open public accounts, which were then used to purchase USDT for money laundering. Further investigation identified Xue's partner as Kuang, who was arrested on February 26. Kuang confessed to collaborating with Sun and Sui in aiding criminals.
Kuang admitted that he rarely met Sun and Sui in person, communicating mainly through social media. In September of the previous year, Sun had approached Kuang with a quick money-making scheme involving the opening of public accounts to launder illegal funds. Despite initial hesitation, Kuang succumbed to the lure of profit and agreed to participate. Kuang then recruited Xue and Sui into the operation. To meet the demand for numerous public accounts, Kuang enlisted friends to help acquire business licenses and public accounts using others' identification documents.
Starting in November 2023, Kuang and Sun used these accounts to receive money, with Sun coordinating the transfer of funds into the accounts. Kuang then transferred the money to Sui, who used it to purchase USDT. After taking their commissions, the group returned the laundered funds in the form of USDT to their superiors. The task force quickly tracked down Sun and Sui, who confessed to their actions upon capture. Over four months of continued investigation led to the arrest of six more individuals involved in the illegal trade of national documents.
Sun explained that the money laundering process was complex, involving the purchase of USDT and returning it to their superiors. The agreed-upon commissions were 6% for Sun, 5% for Kuang, and a share for Sui. By the time of their arrest, the trio had laundered over 8 million yuan through their illegal activities.
Currently, nine individuals face criminal charges and are awaiting prosecution. The police urge citizens not to lend their identification documents, bank cards, or public accounts to others to prevent their use in illegal activities.