• 29 April 2025
• |
• 09:30

A Chinese court has handed down a conviction in a major crypto-related money laundering case, targeting a trader who used Tether (USDT) transactions to facilitate illegal financial operations.

Xiao Yang, operating out of Sunwu County, connected buyers and sellers of USDT through the messaging platform WeChat, offering slightly better rates than those listed on the OKX exchange. Acting as a middleman, Xiao processed transactions using his personal TP wallet, forwarding payment instructions and pocketing small profits on each deal.

Over a three-month period, Xiao handled close to 10,000 transactions linked to an equal number of payment accounts. In total, he moved over 30 million USDT — roughly 120 million yuan ($16.5 million) — generating illegal profits estimated at 440,000 yuan ($60,000).

Investigators later uncovered ties between Xiao’s services and multiple telecom fraud cases. His accounts had received fraud-linked payments totaling over 59,000 yuan and helped transfer an additional 116,000 yuan, leading to cumulative victim losses exceeding 4.1 million yuan. Authorities found that Xiao ultimately concealed criminal proceeds worth over 170,000 yuan.

The Sunwu County Court ruled that while Xiao Yang played a relatively minor role compared to the larger fraud operations, he was guilty of concealing and disguising the origin of illicit funds. His willingness to confess, return the illicit gains, and express remorse were cited as factors that could mitigate his final sentence, though he still received criminal penalties and a fine.

This case highlights China’s toughened crackdown on virtual currency activities. Since 2021, when major Chinese regulators formally outlawed crypto-related business operations, courts across the country have been increasingly aggressive in pursuing offenses tied to digital assets.

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