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Guangdong police detain 16 in virtual currency money-laundering case

Guangdong police detain 16 in virtual currency money-laundering case

Authorities said the alleged network moved telecom scam proceeds through rented bank accounts and then into digital assets, highlighting China’s broader push to tighten enforcement against crypto-linked money laundering.

Fact Check
Multiple independent sources, including the original Guangzhou Daily report (via Baijiahao) and secondary aggregators BlockBeats, PANews and CoinNess, consistently confirm that Zhanjiang and Leizhou police in Guangdong dismantled a virtual currency 'runscore' (跑分) money-laundering ring that moved telecom/online fraud proceeds through crypto transactions, criminally detaining 16 people. The BlockBeats original text specifically references a July 24 early-morning precise arrest operation, corroborating the claimed July 24 cross-regional takedown date. The consistency and traceability to the Guangzhou Daily primary report make the claim well-supported.
Summary

Police in Guangdong said they detained 16 people suspected of running a cryptocurrency money-laundering network that allegedly helped move proceeds from telephone and online fraud through rented bank accounts and then into digital assets. Authorities described the group as a “family-like” organization that relied on close personal relationships to recruit participants and control financial accounts. Investigators said the operation used a multi-stage process in which recruited individuals rented out bank cards and payment accounts, allowing illicit funds to pass through multiple intermediaries before conversion into cryptocurrency. Authorities have not disclosed the amount involved, the cryptocurrencies used, or the blockchain networks tied to the case. The arrests come as China continues to tighten its legal framework for crypto-related financial crime after banning cryptocurrency exchanges and related financial services in mainland China in 2021, recognizing virtual asset transactions in August 2024 as a possible money-laundering channel, and putting an updated Anti-Money Laundering Law into effect on January 1, 2025.

Terms & Concepts
  • money-laundering network: A group accused of moving illicit funds through multiple steps to hide their origin.
  • digital assets: Electronically transferable assets, including cryptocurrencies, used to store or move value.
  • Anti-Money Laundering Law: A legal framework aimed at detecting, preventing, and prosecuting the movement of illicit funds.