China Tightens Crypto Laws: Trader Convicted for $16.5M USDT Laundering Scheme

• Xiao Yang was sentenced for laundering 120 million yuan through USDT transactions.
• As per the notice, the user processed nearly 10,000 crypto trades linked to fraud schemes.
• The recent case highlights China’s strict enforcement of virtual currency prohibitions.

A court in Sunwu County has ruled against a cryptocurrency trader identified as Xiao Yang, who facilitated money laundering operations through USDT (Tether) transactions. The case is one of 12 virtual currency-related proceedings heard by the court in 2024.

According to court documents, Xiao Yang used WeChat, an instant messaging app, to connect buyers and sellers of USDT, commonly referred to as “U-coins” in China. Operating with price differentials ranging from 1 to 6 cents compared to rates on the OKX exchange (formerly Ouyi), Xiao Yang processed transactions by forwarding payment information between parties and using his personal TP wallet as an intermediary.

Within three months, Xiao Yang processed nearly 10,000 USDT transactions involving almost 10,000 different payment accounts. During investigations, it was revealed that he processed more than 30.3 million USDT tokens and that the money valu…

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