Crypto Trader Busted in $16M USDT Scam — Here Is What Happened

A court in Sunwu County has convicted a cryptocurrency trader, Xiao Yang, for operating a major money laundering scheme using USDT transactions. He used WeChat to connect buyers and sellers and moved payments through his personal TP wallet.

Authorities reported that Xiao Yang processed almost 10,000 USDT transactions in just three months. His operations moved more than 30.3 million USDT tokens, valued at over 120 million yuan, and earned him illegal profits of over 440,000 yuan.

Investigations revealed that Xiao Yang’s accounts were linked to seven telecom fraud cases. His financial activities included receiving over 59,000 yuan in fraud proceeds and assisting in transferring 116,000 yuan, leading to victim losses totaling more than 4.189 million yuan.

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Court Exposes Full Scale of the Crypto Laundering Scheme

The court documents confirmed that Xiao Yang helped conceal criminal funds amounting to more than 170,000 yuan. Even though he played a minor role, the Sunwu Court described the case as serious under Chinese law.

Xiao Yang’s decision to confess, express remorse, and return illicit earnings was taken into account during sentencing. However, the court still imposed a criminal penalty along with a fine due to the gravity of his actions.

The conviction comes amid China’s ongoing efforts to crack down on illegal cryptocurrency activities. Since 2021, Chinese authorities have maintained a strict ban on virtual currency transactions, reinforcing their stance through coordinated enforcement.

Xiao Yang’s case was among twelve virtual currency-related cases reviewed by the Sunwu Court this year. It reflects an intensifying clampdown on underground crypto operations across the country.

Conclusion

The conviction of Xiao Yang highlights China’s commitment to eliminating illegal cryptocurrency networks. Virtual asset traders operating outside legal boundaries now face heightened legal risks across the country.

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