A Chinese court sentenced a defendant to 3.5 years for facilitating cryptocurrency transactions involving stolen funds. The Beijing No. 2 Intermediate People’s Court case represents China’s tightening enforcement against suspicious digital asset activities.
Court Establishes New Precedent for Crypto-Related Money Laundering
In August 2024, the defendant, who appears as Liu in the press report, knowingly sold USDT tokens to someone else in exchange for 200,000 yuan, $27,850 in cash. The court determined Liu was aware that the money came from fraud victims. Authorities could not trace where the illicit funds ultimately went.
Liu’s conviction marks a significant legal precedent in China’s cryptocurrency enforcement landscape. The court ruled that Liu’s actions constituted concealing and disguising criminal proceeds under Chinese law. Liu received a 3.5-year prison sentence plus a 40,000 yuan, $5,570 fine.
The case highlights China’s increasingly strict approach to cryptocurrency-related crimes. Semi-official media coverage suggests authorities are sending a clear warning to market participants. Previously, courts lacked clear precedents for prosecuting suspicious digital currency transactions.
Legal experts note the ruling’s emphasis on the defendant’s knowledge of criminal origins. Courts determined Liu understood the cash’s illicit nature despite his denials. The “should have known” legal standard applies even when defendants claim ignorance.
Enforcement Escalating
Last year, a Beijing court sentenced a tech executive to 14 years for orchestrating a $19.5 million cryptocurrency laundering scheme. Chinese courts have also sentenced gangs for money laundering using the digital yuan, with prison terms ranging from 7 to 16 months. Police in Qingdao are prosecuting a case involving USDT laundering of over 8 million yuan.
China’s Supreme People’s Procuratorate reported prosecuting 2,971 people for money laundering in 2023, representing a 20-fold increase from 2019. In August 2024, China’s Supreme Court revised anti-money laundering laws to explicitly recognize crypto transactions as money laundering methods. Authorities now consider laundering amounts over 5 million yuan serious offenses under the law.
The precedent establishes more precise boundaries for cryptocurrency trading in China’s restrictive regulatory environment. Market participants now face heightened legal risks when engaging in digital asset transactions.
The MAS of Singapore has recently announced stringent AML and CFT controls on digital payment token (DPT) service providers. According to Moody’s, these regulatory changes aim to mitigate the risk
Press Release from Carey Olsen, Thursday 21 August, 2025. Carey Olsen Singapore partners James Noble and Helen Wang and Hong Kong.partners Tim Haynes and Matthew Watson have been featured in the Asian
The EU’s investigation was announced after Swedish music streaming company Spotify filed an antitrust complaint over so-called “Apple Tax” in 2020. London: The European Union on Monday
The European Commission on Thursday removed Gibraltar from its list of high-risk countries with “strategic deficiencies” in mechanisms to counter money laundering and terrorist financing. The step