Digital Yuan Is Involved in Money Laundering Case in China

Key facts:
  • Police in China is investigating a case of fraud and possible money laundering.
  • There are already 11 suspects who have been detained.

Eleven people were arrested for having committed a scam with digital yuan (e-CNY), China’s new official cryptocurrency. The case, which is still under investigation by the police, is an alleged money laundering activity.

It all happened in Xinmi, a city in northern China when a person named Qu bought a product from a digital store, police said. After making the purchase, the business informed her that there was a problem with the quality of the item, so it would be compensated with a refund of the money multiplied by three.

Subsequently, the Xinmi City Public Security Bureau detected the suspicious movements and called the activity possible money laundering. As Crypto finance reported on another occasion, the authorities of China have the right to examine the digital yuan wallets of its inhabitants. That is, it is a system that does not have privacy.

China’s government can access data from the population’s digital yuan accounts.
Source: @InfoseekChina /

Some experts believe that the government of China created the digital yuan cryptocurrency to control and monitor citizens. A report by Dovey Wan, an expert investor in the Asian market, and Yaya Fanusie, a member of the Center for the New Security of the United States attests to this.

Alleged Cryptocurrency Criminal Group Pulled Its Money from China

Police identified the wallet holder’s name Lin, who is 26 years old and lives in Fuzhou, a city in eastern China. After being found, she was detained along with ten other related people who were suspicious and were subjected to a surprise trial.

China’s Criminal Investigation Center stated that after the trial, the suspect transferred funds in renminbi (RMB), the country’s traditional currency, abroad, more precisely to Cambodia. In this way, the investigation is limited, since the agency has no jurisdiction in that territory.

Donald M. Ashe

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