A court in China’s Tongliang city, near Chongqing, sentenced 21 people for their involvement in Tether-denominated online fraud and the transfer of illegal casino proceeds. (USDT) The total amount converted to Chinese Yuan (RMB) is RMB 2.25 billion ($307 million).
According to breaking news The court heard that the two defendants, surnamed Jiang and Zheng, were working to collect 19 other money mules. According to court documents, the group used a decentralized wallet called Bitpie (similar to Metamask) to move USDT to a local P2P exchange on a cryptocurrency platform and convert it into Renminbi.
Later, when asked about the reason for the remittances, they used false pretexts such as project payments and workers’ wages, and withdrew fiat currency in various cities across the country. According to court documents, Jiang earned RMB 22.62 million ($3 million) for his efforts.
The court found the group guilty of misrepresenting and concealing criminal proceeds and imposed various prison terms and fines, with Jiang sentenced to six years and three months and a fine of 500,000 yuan. In response, Chung was also fined the same amount and sentenced to six years in prison.
Although court documents do not specify the source of the USDT, it is a popular digital asset used by fraudsters operating in Southeast Asia. Bloomberg journalist Zeke Foer chronicles how in his new book Number Go Up. These gangs are effectively tethered.
