Hunan Xiangtan Procuratorate Cracks Major Virtual Currency Money Laundering Case Involving Over 6.84 Million Yuan, 8 Individuals Sentenced

Deep Tide TechFlow News, on March 20th, according to Huasheng Online, the People’s Procuratorate of Yuetang District, Xiangtan City, Hunan Province, recently announced the first-instance verdict of a case involving concealing and disguising criminal proceeds. The case involved over 6.84 million yuan, with all 8 defendants sentenced.

The gang used fake transactions of Moutai liquor as a cover to launder illicit funds from overseas telecom fraud through virtual currency channels, taking an 8% illegal commission on each transaction. Among them, member Chen connected with upstream scam gangs via overseas encrypted instant messaging software, received the stolen funds, and coordinated with off-site traders (“U Traders”) to complete virtual currency exchanges and transfers. Huang disguised the money transfer trail under the pretense of buying and selling Moutai liquor. Xie was responsible for providing tools for the crime and compiling financial details.

In December 2023, after a victim reported the case, it came to light. Prosecutors intervened early in the investigation, working with public security authorities to trace nearly 20 million yuan in funds and analyze vast amounts of electronic data, enabling a comprehensive crackdown. The court ultimately sentenced Xie and six other main and secondary offenders to prison terms ranging from 2 to 6 years for concealing and disguising criminal proceeds. A lighter sentence was given to Liang Moumou, who received 1 year in prison with a 1-year probation.