Police in Hefei Xinzhan, China, detained Liu in Sichuan for allegedly laundering ¥260,000 through overseas virtual currency trades linked to a telecom fraud case.
On January 15, 2026, Hefei Xinzhan police arrested Liu in Sichuan in connection with a ¥260,000 telecom fraud case. Investigators found that since 2020, Liu traded virtual currency via overseas apps, selling to fraudsters on illegal platforms. Authorities determined that in June 2025, Liu laundered illicit funds from the fraud scheme to his WeChat account. The arrest follows a focused investigation into the use of crypto transactions to obscure proceeds from telecommunication-related crimes.