China Seizes Cryptocurrency in Landmark Court Ruling

Chinese officials have announced the nation’s first-ever case of bitcoin seizure through a court judgement, marking a significant milestone in their ongoing efforts to combat illicit cryptocurrency activity.

Chinese authorities were in charge of the investigation, which turned up a massive international internet gambling organization with a startling 400 billion yuan ($56 billion) in annual revenue. A cryptocurrency was discovered to be the main conduit for the illegal activity.

The police stated, “Preliminary investigation of this online gambling case, the amount involved in the case reached 4000 billion, there were more than 5 people involved, the server was set up overseas, the method of fund laundering used the most difficult virtual currency, and the main backbone of the case may be overseas.”

Cracking Down on Cryptocurrency-Related Crimes

This development demonstrates China’s steadfast dedication to stopping illegal cryptocurrency-related activity. Since 2017, the government has gradually tightened the rules governing cryptocurrency trading.

Unearthing the Case- Investigation Initiated in 2021

The matter originally came to light on July 28, 2021, when Xiong Xong informed the Jishan police station about his involvement in mobile gaming. But what at first looked to be a straightforward instance of smartphone gaming rapidly got out of hand.

The pull of cash turned the gaming experience into something more evil as Xiong observed his teammates amassing huge sums of money. Even though he started off earning thousands of yuan, Xiong’s luck started to change as he raised his bets, which led to losses of more than 100,000 yuan (USD 14,000).

Following a comprehensive investigation, a sizable global criminal organization that used bitcoin to conceal its illegal operations was exposed. According to local sources, the usage of cryptocurrencies presented major difficulties for the authorities in determining the source of the funds and fully appreciating the extent of the operation.

Multiple Arrests and Confiscations

Following this discovery, officials demolished 14 alleged criminal groups and made arrests in many provinces. Over 130 people were apprehended as a result of the operation, and laptops, cell phones, and bank cards were seized by the authorities. This is the first instance of recovering virtual money in the nation.

After a two-year investigation by police, Qiu Moumou, the primary suspect and suspected mastermind, is now set to go on trial. It’s vital to remember that since 1949, gambling has been forbidden in the People’s Republic of China.

China formally ruled that all bitcoin trading was prohibited in September 2021. The trade of cryptocurrencies was initially prohibited in 2019, but it continued through overseas exchanges. Millions of Chinese people have used cryptocurrencies despite the ban, but investors and companies have treaded carefully in this market.