In a report on 8BTC on Monday, about 4,000 bank accounts were frozen since June 4 on suspicion of being involved in illegal trading activities, including money laundering.
These accounts mostly have cryptocurrency trading on OTC. Some accounts have been frozen while there has been no transaction activity for the past few months.
According to the news, authorities stated that Tether (USDT) is often used in illegal activities. The police are even learning about blockchain and chain analysis to understand how to track cryptocurrency assets.
However, there are a number of accounts that have been frozen in the past time not related to the alleged violations. For example, an (anonymous) investor told 8BTC that they suddenly discovered their bank account was frozen after using the yuan to buy cryptocurrencies on an exchange. big last week.
It seems the government would rather "kill it wrongly than miss it" in its campaign to sweep down fraudulent activities related to cryptocurrency.
According to local police in Guangzhou, scammers in a city in Guangdong province created a fake Huobi website to cheat investors, and transfer the proceeds illegally to an overseas account. .
Besides, the People's Bank of China (PBOC) has also increased efforts to crack down on money laundering. Announcements from the bank, many cryptocurrency startups, were investigated by the local financial office and police.
Since the PBOC closed cryptocurrency exchanges in September 2017, people in China have been using OTC to trade between cryptocurrencies and the yuan.
The paradox is that this happened after the cryptocurrency was said to be legal in China with ruling from several Chinese courts. For example, Shanghai No. 1 Intermediate People's Court ruled that Bitcoin was an asset protected by law.
The People's Court of Shenzhen District also stated that Ethereum is a legal asset of economic value. In addition, China passed the Civil Code in May to protect the inheritance of cryptocurrency.
