Crypto Money Laundering Crackdown in China: Report Reveals 3,000+ Prosecuted!

But that’s just one piece of the puzzle. The report also exposes China’s broader crackdown on financial fraud, from securities crimes to high-profile corporate cases.

So, how deep does this crackdown go, and what does it mean for crypto in China? Let’s break it down.

How Criminals Use Crypto to Launder Money

According to the report, criminals hide illegal funds by converting them into anonymous cryptocurrencies. These assets are then mixed with others, making them harder to trace. The money is quickly moved across multiple crypto addresses before being cashed out under the disguise of legal trading or investments. In some cases, it is used to buy high-value goods, further covering up its origins.

China’s Broader Crackdown on Financial Crimes

China has intensified its fight against financial fraud. In 2024 alone, around 25,000 people were arrested for financial crimes. The report also states that at least 825 individuals faced prosecution for securities offenses like financial fraud and insider trading.

Several high-profile cases were addressed as well. The report mentions that 42 individuals linked to the Evergrande Group and 49 associated with the Zhongzhi Group were prosecuted in the same year.

Meanwhile, the China Securities Regulatory Commission is working with the procuratorate to clean up the private equity sector.

China’s Harsh Stance on Cryptocurrency

With thousands of prosecutions, the government is making it clear that crypto money laundering won’t be tolerated.