A person identified as Mr. Chen was sentenced to prison by the Fuzhou Mawei Public Prosecution for hiding his crime, as he purchased Tether worth 94,988 Chinese Yuan (13,067 dollars). Chinese authorities continue to exert pressure on blockchain and artificial intelligence technology.
According to local news reports, Mr. Chen contacted Mr. Lin, whom he met in February 2022, to publish his bank card information on the social media application WeChat. Mr. Chen later received a transfer of Chinese Yuan from Mr. Lin to purchase USDT.
USDT was then sent back to Mr. Lin. During this process, Mr. Chen earned a total commission of 147.1 Chinese Yuan (20.26 dollars). The Fuzhou Mawei Public Prosecution stated the following regarding the matter:
“The scammers used cryptocurrency to transfer and launder stolen money. Knowing that they used the information network to commit crimes and providing assistance to them under the guise of purchasing cryptocurrency violates the law regarding online money laundering.”
The Fuzhou Mawei Public Prosecution then sentenced Mr. Chen to nine months in prison, with the sentence suspended for one year, and imposed a fine of 5,000 Chinese Yuan (689 dollars).
Since the beginning of the year, Chinese authorities have been exerting strong pressure on cryptocurrency activities in the country. Last week, Jinfeng Sun, the commissioner of the Cyber Security Bureau, stated that technologies such as blockchain and artificial intelligence were involved in a series of incidents related to “fraud and data theft.”
However, it is evident that the pressure is extensive and not specific to crime deterrence. In July, the Multichain protocol, with a value of 1.5 billion dollars, was shut down by the Chinese police following the arrest of its CEO. Since then, users’ bridged assets and corporate funds have mysteriously converted to different assets and stablecoins and have been bridged from the protocol. No explanation has been provided for this.