Shanghai announced a cross-border illegal exchange case involving stablecoins, involving a total amount of 6.5 billion yuan

PANews reported on July 20 that the Shanghai Pudong New Area People's Court announced on July 16 a case of illegal exchange of virtual currency that was sentenced in March this year. The case shows that Yang, Xu and others operated domestic shell company accounts to provide stable currency (the transaction medium is Tether) for overseas accounts of unspecified customers, thereby realizing cross-border transfer of funds to obtain income. The amount of illegal foreign exchange transactions involved in three years reached 6.5 billion yuan. Among them, Yang was responsible for soliciting customers and allocating foreign exchange funds abroad, and Xu managed the public accounts of 17 shell companies in China, processing an average daily cash flow of more than 10 million yuan, with clear division of labor and close cooperation.

The disclosed case content shows that at the end of 2023, Ms. Chen, a Shanghai citizen, needed to remit money to her daughter overseas. Due to the restriction of my country's foreign exchange quota of 50,000 US dollars per person per year, she contacted an overseas "currency exchange company" (the domestic shell company A controlled by the aforementioned Yang Mou and others). According to the instructions, Ms. Chen remitted RMB to the account of Company A, and then her daughter's overseas account received the equivalent amount of foreign exchange, and the "currency exchange company" charged a certain percentage of the handling fee as a reward. For a long time, the criminal gang has provided illegal exchange services for domestic and foreign customers who have foreign currency and RMB exchange needs in the name of "collection and payment" overseas through cross-border "counter-knocking".