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Shanghai Court Makes Decision in First Case of Using Digital Yuan for Money Laundering .

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A court in Shanghai has made a decision about a case involving the use of Chinese digital yuan and cryptocurrency for money laundering. This is an important legal ruling for crypto-related crimes in China.

The Yangpu District People’s Court in Shanghai has finished a very important case. The case is about using cryptocurrency and digital yuan to clean money from criminal activities.

How a racing team uses Digital Yuan for their transactions.

Xiao was in charge of a group that illegally moved money around and made a profit. They hired people to help them and earned money from the transactions. After Xiao made sure that the money was clean, his racers would buy cryptocurrency from private traders, like Tether (USDT), and then send it to the clients in exchange for digital yuan.

USDT

The racers will use their accounts to take out money from ATMs. Finally, they put the money taken out of the digital yuan wallets into their own accounts and sent it to their clients’ chosen accounts. This finished the money laundering.

To help spread the use of the Chinese digital yuan, four different kinds of e-CNY wallets were brought in. One of these is Type 4, which are anonymous wallets that Xiao’s point racing team uses. You can open a Type 4 account without going to a bank or showing ID. You just need to verify your phone number.

Type 4 wallets keep your identity private, but they don’t let you deposit or transfer a lot of money. The team bought many phone numbers, over 30 smartphones, and took out more than 10 million yuan ($1. 6 million) from over 900 digital yuan accounts.

“Bank notification leads to people getting arrested and sent to jail. “

In May 2023, a racer named Wang took out 30 amounts of 123,000 yuan ($17,200) from a cash machine in Yangpu District in just two hours. He used more than 10 different bank accounts to do this. The bank got worried because there were a lot of transactions, so they looked into it and arrested some people.

digital yuan withdrawal

The court decided that Xiao’s racing team broke the law by hiding and covering up money earned from criminal activities. Eight people were given jail time between seven months and four years and six months, and they also have to pay fines.

Gong and Huang sold USDT to Xiao’s friends who were racing. They were found guilty of helping with criminal activities on the internet and were each given a one year and four month prison sentence, along with fines.

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