Crypto-fraud activity is reportedly still rampant today as Chinese authorities operating in rural Tonglio, Mongolia have arrested 63 individuals involved in a massive money laundering scheme worth $1.7 billion in Tether cryptocurrency.
The suspicious transaction was identified after a local bank saw deposits totaling more than 10 million yuan through the bank, but Chinese authorities seized $18.6 million during the raid.
Criminals have reportedly set up groups on Telegram by recruiting individuals who have opened crypto exchange accounts while members who can join will earn a commission if they can 'launder' the money.
Generally, the criminal group started its operations in May 2021 when the Chinese government banned its citizens from using crypto on the grounds of reducing carbon consumption.
Strict action by the Chinese government has encouraged Bitcoin (BTC) miners to move to neighboring Kazakhstan or the United States (US) after their BTC mining farm in the Inner Mongolia region, Tonglio, was stopped.
Despite this, a few miners expressed their excitement that crypto operations through proxy servers* and virtual private networks (VPNs) continued.
*A server application that acts as an intermediary and is exchanged through a cryptographically secured connection
On the other hand, the Chinese government is in the process of launching its own digital yuan currency while other countries that also intend to make such a move are Japan, Australia, China and the US.
