China Detains 16 in Crypto Money Laundering Case Linked to Phone Scams
Chinese authorities have detained 16 individuals accused of operating a money laundering network that processed funds from phone scams. The suspects allegedly used bank cards and payment accounts to move suspicious funds, often through close personal relationships.
The case is the latest development in China's crackdown on crypto-related crimes. Since 2021, the country has treated cryptocurrency exchanges and intermediation services as illegal financial activities, forcing some activity toward informal networks and offshore platforms.
China's revised anti-money laundering law, which took effect on January 1, 2025, strengthened monitoring duties and cooperation between authorities handling financial crime, online fraud, and payment abuse. The updated framework gives prosecutors a clearer basis to pursue cases where fraud proceeds are moved through digital assets.
The detentions come as other countries also pursue crypto-linked laundering and fraud networks. In the United States, prosecutors recently charged two individuals over an alleged investment fraud laundering scheme that involved at least $43 million in victim funds being transferred to bank accounts in China.