Breaking: China Reports First Case of Money Laundering Using Digital Yuan

The Chinese government had just begun to celebrate the nation’s digital Yuan as a secure and centralized digital payment method when the Xinmi police cracked down on the first-ever money laundering racket using China’s CBDC. The Xinmi Public Security together with the Anti-fraud Center of the Zhengzhou Public Security Bureau arrested 11 suspects in the Fujian Province for illegally using digital Yuan to launder money. Additionally, the authorities revealed that the gang members were using China’s CBDC to further launder money for an overseas fraud group hiding in Cambodia.
China CBDC Scam via telecommunications
The CBDC fraud was executed by the use of a telecommunications network in Xinmi City. Victims of the fraud would receive random calls concerning their faulty online purchase, referring to quality issues, and the scammer would offer to further compensate the buyer for the mistake, at three times the price of the product.
The scammers would ask the victims for verification, which also included multiple transfers via digital yuan. According to local news, the Criminal Investigation Brigade of the Public Security Bureau of Xinmi City revealed that multiple payments were being transferred into a specific electronic wallet, but the transaction mode of the wallet was different from that of the previous online payment. The alleged culprits are currently detained for criminal investigation by Xinmi City Public Security Bureau.
China Digital Yuan is not immune to illegal financial activities
According to China’s digital renminbi experts, the feature of “controllable anonymity” in China’s CBDC guarantees “reasonable anonymous transactions”, along with personal information protection. However, the main focus of digital yuan has been to “prevent, control, and combat money laundering, terrorist financing, tax evasion, and other illegal and criminal activities, and to maintain financial security”.
Yet, the digital renminbi’s inability to abolish financial crimes that fir the category of former crimes using cryptocurrencies has raised considerable concerns about the use of China’s CBDC. Authorities have informed local news that the central bank has found that several gray and black industries have incorporated the digital renminbi for illegal activities further causing CBDC losses in millions.
- VanEck Registers Lido Staked Ethereum Trust in Delaware, LDO Up 7%
- Fed’s Lorie Logan Urges Caution on Further Rate Cuts Citing Inflation Risks
- Nasdaq-Listed Fitell Adds Pump.fun’s PUMP To Supplement Solana Treasury
- FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading
- Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns