China’s Supreme Procuratorate has sentenced Zhao Dong, a prominent figure in the crypto industry and a Bitfinex shareholder, to seven years in prison for conducting illegal business and unlicensed foreign exchange transactions. This conviction is part of China’s broad strategy to eliminate illicit crypto activities.
Zhao’s sentencing is a major blow to the OTC crypto market, as his involvement abruptly ends due to the Supreme People’s Procuratorate and the State Administration of Foreign Exchange’s extensive investigations. This action is in line with the Chinese government’s commitment to eradicating financial misconduct, especially those with international implications.
China’s approach to financial fraud has been stern, as evident in eight high-profile cases ranging from foreign exchange fraud to complex scams. Authorities have conducted meticulous investigations, examining bank records, communication logs, and other substantial evidence to build strong cases against perpetrators.
At the same time, authorities uncovered an illegal banking system that used cryptocurrencies to circumvent foreign exchange regulations. The operation involved converting virtual currencies to foreign currency through international platforms, a clear violation of the law. Investigations revealed over $2.2 billion in transfers, channeled through multiple bank accounts across various regions, illustrating the increasing complexity of monitoring financial transactions in the digital age.
