Police in China’s Shanxi province have dismantled a criminal gang involved in money laundering through USDT, arresting seven individuals, according to a report from the Heshun Public Security Bureau. After an extensive investigation, the Criminal Investigation Brigade successfully took down the gang, which specialized in defrauding victims, withdrawing cash, and using the cryptocurrency USDT to launder funds.
The case began in early September 2024 when a local resident, identified as Zhao Moumou, was defrauded of 50,000 yuan by someone impersonating a government official. The funds were withdrawn from a bank in Chongqing, prompting police to investigate. Officers analyzed bank surveillance footage and reviewed transaction records, eventually uncovering a sophisticated scam. The fraudsters tricked a “customer” into purchasing a car and applying for a loan, then obtained the customer’s bank card details, which were passed on to overseas fraudsters through the messaging app Telegram.
Once the stolen funds were transferred into the customer’s bank account, the fraudsters convinced them to withdraw the cash under the guise of paying a car dealer. The cash was immediately converted into USDT and transferred overseas, making the funds difficult to trace.
The gang was linked to over 10 cases across major cities like Beijing, Shanghai, and Anhui. With assistance from the Criminal Investigation Brigade and the Cyber Security Brigade, the police were able to map out the entire structure of the criminal operation, identify the suspects, and track their activities.
In coordinated arrests across Chongqing and Henan, authorities apprehended seven suspects. Police seized a vehicle involved in the case, 10 mobile phones, a banknote detector, and more than 37,000 yuan in cash. The investigation remains ongoing.
