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Digital Yuan Engaged in Money Laundering Case in China

Eleven people were arrested for committing a scam with digital yuan (e-CNY), China’s new official cryptocurrency. The case, which is still under investigation by the police, involves an alleged money laundering activity.

It all happened in Xinmi, a city in northern China, when a person named Qu bought a product at a digital store, according to police. After making the purchase, the business informed you that there was a problem with the quality of the item, for which it would be compensated with the refund of the money multiplied by three.

As the company promised, after the notice, sent him 200 thousand yuan, which is three times the value of the product that Qu had bought. This figure is equivalent to USD 31 thousand, according to data from CoinGecko. The company made the transaction through multiple transfers from a digital yuan wallet.

Subsequently, the Xinmi City Public Security Bureau detected the suspicious movements and called the activity possible money laundering. As . reported on another occasion, the Chinese authorities have the right to examine the digital yuan wallets of its inhabitants. In other words, it is a system that has no privacy.


The Chinese government has access to data from the population’s digital yuan accounts.
Source: @InfoseekChina /

Some experts consider that The digital yuan cryptocurrency was created by the government of China to control and monitor citizens. This is proven by a report by Dovey Wan, an expert investor in the Asian market, and Yaya Fanusie, a member of the Center for New Security in the United States.

The alleged cryptocurrency criminal group took their money out of China

The police identified that the holder of the wallet is named Lin, is 26 years old and lives in Fuzhou, a city in eastern China. After being found, she was detained with ten other people related who were suspicious and were subjected to a surprise trial.

China’s Criminal Investigation Center stated that after the trial, the suspects transferred funds in renminbi (RMB), the country’s traditional currency, abroad, more precisely to Cambodia. In this way, research is limited, since the agency does not have jurisdiction in that territory.

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Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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