China imprisons five people for a scheme to launder 166 million dollars in cryptocurrency.

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The Beijing court sentenced 5 operators of an illegal foreign exchange ring to 2–4 years in prison for using USDT to transfer over 166 million USD abroad. This is considered one of the largest cases in China related to money laundering with cryptocurrency, marking a step forward in the authorities' ability to trace blockchain transactions. From January to August 2023, this group converted customer funds into USDT through multiple accounts, disguising illegal foreign exchange transactions.

At the same time, the Governor of the People's Bank of China, Pan Gongsheng, warned that stablecoins threaten global financial stability and affirmed a “zero tolerance” stance towards private cryptocurrencies.

Following directives from Beijing, Ant Group and JD.com have also canceled plans to issue stablecoins in Hong Kong, reflecting China's hardline stance on digital assets.

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