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Shanghai court jails five in 200 million yuan crypto forex scheme

Shanghai court jails five in 200 million yuan crypto forex scheme

Jing'an prosecutors said the virtual-currency cross-border matching operation ran for three years; five defendants received prison terms while Shanghai's foreign-exchange regulator opened related investigations.

Fact Check
The Jing'an Procuratorate's own release and independent outlets (mpaypass.com.cn, PANews, BlockBeats) all confirm the key claim elements: a Shanghai (Jing'an) crypto cross-border 对敲 illegal FX scheme exceeding 200M yuan, spanning three years, with five defendants sentenced to prison (2.5-6 years) for illegal business operation, and referral to/opening of an investigation by SAFE's Shanghai branch. All figures and facts are consistent across primary and secondary sources.
Summary

A Shanghai court sentenced five defendants in a virtual-currency cross-border foreign-exchange case involving more than 200 million yuan, or about $29 million, over three years. Jing'an District People's Procuratorate said the operation used a cross-border matching model for illegal foreign-exchange conversion. Prison terms ranged from 2 years and 6 months to 6 years, while four others received relative non-prosecution. The Shanghai branch of the foreign-exchange regulator has also opened investigations, underscoring continued Chinese scrutiny of crypto-linked cross-border capital flows and unauthorized FX activity.

Terms & Concepts
  • cross-border foreign-exchange scheme: An operation moving money between countries outside approved foreign-exchange channels.
  • cross-border matching model: A method that pairs parties in different jurisdictions to complete transfers or exchanges outside formal channels.
  • relative non-prosecution: A decision not to pursue charges under certain circumstances.