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China’s Supreme Procuratorate has reportedly disclosed the details behind the seven-year prison sentence given to the founder of the over-the-counter (OTC) crypto trading desk RenrenBit, Zhao Dong. 
In a press release on December 27, the Chinese legal authority revealed that the convictions were related to illegal business operations and unlicensed foreign exchange transactions. 
China's Supreme Procuratorate disclosed the details of the team of China's crypto OTC king Zhao Dong. Zhao Dong was sentenced to 7 years for illegal business operations and illegal foreign exchange trading. He is the founder of RenrenBit and a small shareholder of Bitfinex.… 
— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1739868899322302907?ref_src=twsrc%5Etfw">December 27, 2023</a> 
The agency reportedly highlighted that the crackdown on the ‘OTC King’ and his associates was supported by substantial evidence, including bank records, communication logs, confessions, and witness statements. 
This was closely followed by three public hearings, during which the defendants argued that their actions were digital currency transactions, not foreign exchange trading. 
Despite their claims, the prosecutor presented chat records as evidence, resulting in a verdict that sentenced Dong to seven years in prison and a 2.3 million Chinese yuan ($325,000) fine. 
<h2 id="oversight-on-china-s-crypto-landscape-latest-trajectory">Oversight on China’s Crypto Landscape Latest Trajectory</h2> 
 On December 24, local news outlets <a href="https://mp.weixin.qq.com/s/dI3-Y164TZwuGGYq95j9tA">reported</a> that China’s State Administration of Foreign Exchange had cracked an illicit forex ring operation that leveraged cryptocurrencies to bypass foreign exchange laws. 
-Regulatory and Legal- 1. China's State Administration of Foreign Exchange Cracks Down on $2.2 Billion Crypto Exchange Ring: The Chinese State Administration of Foreign Exchange (SAFE) has cracked down on an underground bank that used crypto to offer illegal exchange services.… 
— Bitcoin Veterans (@BitcoinVeterans) <a href="https://twitter.com/BitcoinVeterans/status/1739633294667387141?ref_src=twsrc%5Etfw">December 26, 2023</a> 
Xu Xiao, an official from Qingdao’s State Administration of Foreign Exchange, disclosed that underground banks were acquiring virtual currencies and selling them on international platforms to acquire foreign currency. This promoted an illegal exchange between the yuan and other currencies for profits. 
As part of the investigation, authorities seized approximately $28,000 (200,000 Chinese yuan) worth of digital currencies, including assets such as Tether and <a href="https://cryptonews.com/news/litecoin-price-prediction-as-ltc-gains-2-16-in-24-hours-can-this-uptrend-continue.htm">Litecoin</a> (LTC). 
The scheme’s complexity became apparent as details unfolded, with over $2.2 billion (15.8 billion Chinese yuan) transferred to more than 1000 bank accounts spread across 17 different regions. 
This intricate case underscores the formidable challenges regulatory bodies face in monitoring and controlling financial transactions within the dynamic landscape of digital currencies. 
However, amidst these challenges, <a href="https://cryptonews.com/news/china-unveils-digital-yuan-wallet-machine-for-foreign-passport-holders.htm">China</a> maintains its commitment to fostering the growth and potential innovations stemming from crypto and associated technologies. 
A noteworthy development that depicts this commitment is the <a href="http://www.news.cn/tech/20231226/c5479eb38d4a48b3b003a9f6a7fabe70/c.html">$10 billion investment</a> announced on December 28 by the Chinese venture capital (VC) firm GBA Capital to drive Web3 innovations. 
 BREAKING 
CHINESE VENTURE CAPITAL FIRM GBA CAPITAL HAS ANNOUNCED A $10B PLEDGE TO ESTABLISHED A WEB3 FUND. 
CHINA BETTING HARD ON CRYPTO 
— Ash Crypto (@Ashcryptoreal) <a href="https://twitter.com/Ashcryptoreal/status/1740326759101317288?ref_src=twsrc%5Etfw">December 28, 2023</a> 
The GBA Capital is looking to invest in startups dedicated to virtual reality, the metaverse, and non-fungible tokens (NFTs). This strategic funding initiative is expected to catalyze the transformation of the Guangdong-Hong Kong-Macao economic area into a prominent meta-asset capital.

‘OTC King’ Zhao Guilty of Unauthorized Crypto Operations, Says Chinese Legal Authority

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