Beijing Court Sentences Five in $166M USDT Cross-Border Transfer Case

Sean Williams
USDT

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  • Five individuals jailed for using USDT to move $166M abroad.
  • Digital forensics traced full transaction path through crypto platforms.
  • Case sets a benchmark for future crypto-related financial crime prosecutions.

A Beijing court has sentenced five individuals for using the stablecoin USDT to covertly move funds abroad, bypassing China’s strict foreign exchange controls. The ruling underscores growing regulatory scrutiny on cryptocurrency-related financial crimes in China.

How the Scheme Operated

The defendants, identified as Lin, Lin, Xia, Bao, and Chen, orchestrated an extensive operation from January to August 2023. They received large sums of renminbi (RMB) from domestic clients seeking to move money overseas. Using multiple crypto exchanges, the funds were converted into USDT and sent to foreign wallets.

Investigators revealed that each member was involved in transactions exceeding 149 million yuan, with the total scheme generating over 1.18 billion yuan (roughly USD 166 million). The operation effectively served as an unlicensed cross-border money transfer service, profiting from the difference between domestic RMB prices and offshore USDT rates.

Verdict and Legal Implications

The Haidian District People’s Court convicted the group of “illegal business operations,” sentencing them to two to four years in prison and imposing fines. All five defendants admitted guilt and chose not to appeal.

Prosecutors highlighted the complexity of the investigation, which relied on digital forensics to trace funds from Chinese bank accounts, through crypto exchanges, to overseas wallets. This end-to-end verification allowed authorities to confirm the full scale of the scheme and apply precise sentencing.

Also Read: Tether Mints $1 Billion USDT: Crypto Bulls Eye Potential Market Pump

Cryptocurrency and Regulatory Oversight

Authorities emphasize that this case sets a benchmark for handling crypto-enabled financial crimes. As digital currencies become increasingly entwined with global finance, regulators are enhancing methods to monitor and prosecute illegal cross-border transactions. China’s focus on controlling foreign exchange violations via cryptocurrency signals a strict enforcement approach moving forward.

The USDT cross-border transfer case demonstrates how cryptocurrency, while innovative, can be exploited for illegal purposes. China’s courts and digital forensic teams are now establishing clearer precedents to deter similar financial crimes in the future.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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