The recent ruling by the Tongliang Court in China has shed light on a massive crypto money laundering case. This intricate scheme, which spanned from November 2020 to late April 2021, involved key individuals such as Jiang Moumou and Zheng Moumou. In total, 21 people were sentenced in relation to the $300 million USDT money laundering case.
The Core Players and their Roles
Jiang Moumou and Zheng Moumou were the primary defendants in this case. They meticulously orchestrated the money laundering scheme by recruiting 19 additional members, each with specific responsibilities. These individuals played crucial roles in concealing the proceeds of crime and criminal funds.
Jiang Moumou was sentenced to six years and three months in prison, along with a fine of 500,000 RMB ($68,000). Zheng Moumou, another primary defendant, received a prison sentence of six years and a similar monetary fine. The remaining 19 individuals involved in the scheme were handed fixed-term imprisonment sentences ranging from one to two years and six months, in addition to monetary fines.
The Intricate Operations and Methods
To avoid detection, the group employed various strategies. They bypassed online trading platforms and executed transactions at prices significantly different from market rates. Stablecoin USDT, obtained from online crimes committed by other criminals, was used in the money laundering process.
The ill-gotten gains were channeled through offline Bitpie collection wallets and eventually sold on virtual currency trading platforms. To legitimize their transactions, the group concocted reasons such as withdrawing project funds and paying migrant workers’ wages.
The group leveraged their fabricated reasons to orchestrate cash withdrawals from bank counters across multiple provinces and cities, including Chongqing, Sichuan, and Shanghai. These cash amounts ranged from hundreds of thousands to several million yuan per withdrawal.
Once the cash was obtained, it was carefully packed into trolley cases and backpacks, ready for transportation. The funds were then transported via plane to Fujian Province, specifically Xiamen and Anxi, where they were delivered to designated recipients.
In total, the group managed to transfer over 2.25 billion yuan ($300 million) to overseas entities through this method. Their profits from this elaborate money laundering scheme exceeded a staggering 22.62 million yuan.
