thecoinrepublic.com
As per the report of the Chainanalysis, the Chinese cryptocurrency accounts have sent more than $2.2 billion worth of digital assets to addresses linked to illicit affairs between April 2019 to June 2021.
Chainanalysis has compiled a report in which it has mentioned that the Chinese Cryptocurrency accounts had sent more than $2.2billion worth of digital assets to addresses linked to illicit affairs between April 2019 to June 2021.
These addresses mentioned in the report are subject to criminal activities like fraud and darkness transactions in two years or more. However, large scale Ponzi schemes are less popular in China than in other countries.
More illegal operations
According to the research by Chainanalysis, the platform data provider, the money was transferred to illegal accounts related to money laundering, drug trafficking and other illegal activities between April 2019 and June 2021. These addresses later received $2 billion in cryptocurrencies from criminal sources.
Even though the numbers seem high, they have fallen drastically over the two years compared to other countries. The main reason behind it is the fact that large scale Ponzi schemes are not that common in the world’s most populated nation anymore.
More criminal activities in China
According to the report, China is the hub of the global fentanyl trade, stating that many drug producers employ digital assets to execute transactions. Chinese criminals involved in money laundering cases also use virtual currencies and crypto exchanges in their affairs. To top it all, some of them have built their illegal companies on top of these trading venues.
Chainanalysis has also mentioned in its report, Asian nations take measures against bad actors and gave an example with the founder of several Chinese over-the-counter businesses- Zhao Dong. He pleaded guilty in May to money laundering crimes after being arrested by the authorities earlier for assisting internal illegal activities.
Employing Illegal digital assets and cryptocurrency frauds are very common in China and the authorities in the country have imposed serious punishments on those involved in such crimes. According to the report by Crypto Potato at the end of 2020, principal actors in the Plus Token Ponzi scheme will be jailed for the next 11 years.
Through the scam, the investors were given $2.25 billion worth of virtual currencies. The officials consider this as a major win as it is one of the biggest Ponzi Schemes ever happened in China. Besides imprisonment, the authorities have also fined two key members of PlusToken with fines of $18,000 and $913,000.