Shanghai Police Dismantle Underground Bank Facilitating Cryptocurrency Cross-Border Exchanges, Involving Nearly 20 Billion Yuan
According to the Shanghai Municipal Public Security Bureau, Shanghai police recently dismantled a major underground banking operation involving the use of virtual currencies for illegal cross-border foreign exchange, arresting 19 suspects in a case involving nearly 20 billion yuan. Authorities stated that since August 2024, the syndicate facilitated cross-border currency swaps through a "RMB–virtual currency–foreign currency" pathway: domestic funds were used to purchase virtual currencies, which were then sold via overseas channels to obtain foreign currency before being transferred to client-designated accounts, with service fees collected in the process. Five principal suspects have been formally arrested on suspicion of the crime of illegal business operations and the crime of assisting information network criminal activities, while the case remains under further investigation.
