ChainCatcher news, according to reports from China National Radio, recently, in Yanbian Korean Autonomous Prefecture, Jilin Province, China, a criminal network involving underground banks with a case amount exceeding 1 billion yuan and spanning 10 provinces across the country was cracked down, with over 20 criminal suspects arrested. At the same time, the successful investigation of this case has also unveiled the criminal underbelly of using virtual currency to provide channels for fund transfers. This case is characterized by family-style operations, meaning that the gang members are mostly relatives and friends. They disguise themselves as overseas companies, engaging in low buying and high selling in the domestic and foreign exchange black market, profiting from the exchange rate differences.The main suspect, Zhang Liang, confessed that they borrowed foreign exchange funds from "peers" or used methods such as "exchanging" virtual currency to purchase virtual currency with RMB from cryptocurrency traders and dealers within the country, and then sold the virtual currency overseas to obtain foreign exchange, thereby indirectly achieving the goal of transferring illegal gains from within the country to overseas. Yanbian Economic Investigation stated that by analyzing the sources and uses of funds in underground bank cases handled by public security organs in the prefecture from 2020 to 2023, it has been verified that a large proportion of the involved funds are from labor services, commerce, and tourism, while the rest are suspected funds related to fraud, corruption, and other illegal activities.

ChainCatcher news, according to China News Network, the Public Security Bureau of Panshi City, Jilin Province, successfully cracked a case involving the illegal operation of underground banks using virtual currency, with an amount involved of approximately 2.14 billion yuan. Six suspects who committed crimes in both China and South Korea have been arrested.The police introduced that the individuals involved in the case utilized the characteristics of virtual currency such as anonymous transactions, decentralization, and borderlessness to illegally conduct exchange services between the Chinese yuan and the South Korean won.It is understood that the Economic Investigation Team of the Panshi City Public Security Bureau discovered important clues during their work. A resident from Jilin, Jin Mou Dong, along with Shen Mou, conducted won exchange services in South Korea and China, and during this process, they defrauded others of their money and fled back to China.In response to the clues, the police found that the bank accounts under the names of the two had massive transaction flows, with frequent daily inflows and outflows of funds that were inconsistent in amounts, and numerous trading clients, which matched the characteristics of illegal underground bank operations.The police task force conducted comprehensive analysis and judgment around the financial whereabouts and social relationships of Jin Mou Dong and Shen Mou, expanding the organizational structure and transaction levels, gradually gaining a comprehensive understanding of the gang's organizational structure and the flow of funds. Subsequently, the police successfully arrested the criminal suspects Jin Mou Dong, Shen Mou, and others, and legally seized a large number of involved bank cards and tools used in the crime.The police clarified that the criminal gang used domestic accounts to receive and transfer funds, engaged in OTC trading of virtual currencies, and settled in South Korean won, illegally conducting foreign exchange services to assist groups such as Korean purchasing agents, cross-border e-commerce, and import-export trading companies in exchanging Chinese yuan and South Korean won.Through extensive investigation and evidence collection, the police successively arrested Chen Mou Guang, Luo Mou Tao, He Mou Da, Zheng Mou Yu, and others.