Sixteen people have been detained in China for their alleged participation in a money laundering network using cryptocurrencies that recycled funds from phone scams. The organization recruited individuals to provide their bank accounts, then used splitting platforms called paofen before converting the funds to USDT on the TRON network. Since August 20, 2024, a Chinese judicial interpretation explicitly classifies virtual asset transactions within the scope of money laundering. The new Chinese anti-money laundering law, which took effect on January 1, 2025, has also strengthened monitoring and cooperation mechanisms between authorities.
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