4,000 Chinese bank accounts are frozen due to their relationship with crypto currencies

Posted on Juni 2020No Comment

Local banking authorities reportedly froze about 4,000 Chinese bank accounts of crypto traders.

According to a June 8 report by 8BTC, police froze the bank accounts of thousands of over-the-counter (OTC) traders in China’s Guangdong province.

Crypto currencies are said to be contributing to money laundering problems in Latin America

Allegedly, this is presented as part of a broader investigation into illegal activities such as gambling and money laundering, which 8BTC claims have been commonly facilitated by OTC trading of cryptosystems with the stablecoin tether (USDT).

According to the report, authorities began freezing bank accounts on June 4. A retail investor allegedly found his bank account frozen after buying cryptosystems at a major, credible cryptosystem exchange.

There is no guarantee that the frozen accounts are involved in Corona Millionaire and can allegedly be restored after an analysis of their activities reveals no irregularities.

Australian woman arrested in „Bitcoin cash“ money laundering operation

Local law enforcement is supposed to be learning blockchain analysis skills to track crypto chain transactions (on-chain).

The involvement of crypto currencies in money laundering
Authorities cannot stop crypto currency transactions, and crypto wallets do not need to be linked to personal identities like bank accounts. Due to these characteristics, technology criminals occasionally use crypto currencies for money laundering purposes.

Bitcoin ATMs face more stringent anti-money laundering regulations
As Cointelegraph reported in late February, the threat intelligence firm IntSights said crypto currencies are increasingly being used for money laundering in Latin America.

In May, an Australian woman was arrested after selling Bitcoin (BTC) for cash. She is accused of having conducted a money laundering operation since 2017.