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Chinese Ministry of Public Security on Money Laundering: USDT Is the Most Serious Harm


coinfomania.com 14 April 2022 16:51, UTC
Reading time: ~2 m

In a press conference held by the State Council Information Office (SCIO) on Thursday, the Director of the Criminal Investigation Bureau of the Ministry of Public Security, Liu Zhongyi, shared some information on fraudulent acts going on in the country, where he noted that Tether (USDT) is the most serious means of committing money laundering.

USDT Is the Most Serious Harm

Representatives from various security and technology sectors were present during the conference to discuss progress with cracking down on telecommunications and network fraud.

Zhongyi said that fraud groups continue to use new technologies such as the blockchain, virtual currencies, AI intelligence, remote control and some other means to improve their fraudulent acts. 

Sharing further details, he noted that use of fake apps have resulted in 60% of all fraud cases. Other fraud acts are carried out through the use of second dials, VPNs, cloud voice calls and foreign operators’ phone cards, SMS platforms and communication lines.

Zhongyi also added that the groups move and launder their illicit revenue through cryptocurrencies with USDT being a favorite option.  

“A large number of benchmarking platforms and digital currency are used for money laundering, especially the use of USDT (Tether) is the most serious harm,” he said.

He then reassured the public, telling them that security organs and their associates would continue to put up measures to curb such fraudulent acts.

Bad Actors Continue to Harness Crypto for Illegal Acts

In recent times, bad actors have continued to take advantage of the pseudonymous nature of cryptocurrencies as a way to launder funds.

A report covered by Coinfomania last week showed that Indian authorities have discovered about $286,000 worth of crypto used by criminals in settling drug trades.

Another report that week showed that the United States Department of Justice (DoJ) has recently seized hold of $34 million worth of cryptocurrency used for dark web activities.

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