China Cracks Down on Crypto-Laundering Network Tied to Telephone Scams

Chinese authorities have detained 16 individuals accused of helping to launder proceeds from telephone scams through bank accounts, payment channels, and cryptocurrency-linked transfers.

The suspects allegedly used a network that processed funds from phone fraud cases, recruiting people willing to provide bank cards and payment accounts for moving suspicious funds. The structure of the network was described as operating through close personal relationships, allowing members to recruit account holders and manage the flow of funds between different payment channels.

According to local reports, similar laundering schemes in China often use rented bank accounts before funds move through splitting platforms, with some cases later involving conversion into USDT on networks such as TRON. However, authorities have not confirmed that this was the exact path taken by the suspects in this case.