According to a June eight report by 8BTC, police froze the business enterprise institution accounts of 1000’s of over-the-counter (OTC) merchants from the Chinese province of Guangdong.
This purportedly comes as a part of a wider investigation into unlawful actions resembling acting and cash laundering, which 8BTC states have been generally expedited by crypto OTC buying and merchandising with the stablecoin Tether (USDT).
Per the report, regime began freeze the business enterprise institution accounts on June 4. One retail investor reportedly discovered his checking account frozen after shopping for cryptocurrency on a significant, credible crypto trade.
Frozen accounts are commonly not assured to be concerned in illicit actions and power purportedly be restored after an evaluation of their actions reveals no wrongdoing.
Crypto’s involvement in cash laundering
Cryptocurrency proceedings can’t be stopped-up by regime, and crypto wallets don’t have to be connected to non-public identities like business enterprise institution accounts are. Because of those options, crypto is often utilised by tech-savvy criminals for cash laundering functions.
As Cointelegraph reported in late February, risk intelligence agency IntSights claimed that cryptocurrencies are increasingly acquiring used for cash laundering in Latin America.
In May, an Australian lady was inactive after promoting Bitcoin (BTC) for money. She is accused of acquiring run a cash laundering operation since 2019.