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China Tightens Crypto Grip with Zhao’s 7-Year Sentence

China's crackdown on illicit crypto activities leads to a 7-year prison sentence for Zhao Dong, exposing a $2.2 billion illegal operation.
China Tightens Crypto Grip with Zhao’s 7-Year Sentence

China’s Supreme Procuratorate has handed a seven-year prison sentence to Zhao Dong, a prominent figure in the cryptocurrency world. Zhao, known for his association with RenrenBit and as a Bitfinex shareholder, was found guilty of conducting illegal business and unlicensed foreign exchange transactions. This sentencing is a part of China’s broader strategy to eliminate illicit cryptocurrency practices.

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A Crackdown on OTC Crypto Market

Zhao’s conviction marks a major setback for the over-the-counter (OTC) cryptocurrency market. His involvement in this sector has abruptly stopped due to the rigorous investigative efforts of the Supreme People’s Procuratorate and the State Administration of Foreign Exchange. This action aligns with the Chinese government’s commitment to eradicating financial misconduct, especially those with international ramifications.

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China Sweeping Actions Against Financial Fraud

China’s assertive stance against financial fraud is evident in its handling of eight high-profile cases. These cases range from foreign exchange fraud to complex financial scams, showcasing the government’s dedication to combating financial crimes. Meticulous investigations have led to the unraveling sophisticated schemes, with authorities scrutinizing bank records, communication logs, and other substantial evidence to build strong cases against perpetrators.

Concurrently, authorities uncovered an illegal banking operation that used cryptocurrencies to bypass foreign exchange regulations. The operation involved converting virtual currencies to foreign currency through international platforms, clearly violating the law.

Investigations revealed over $2.2 billion in transfers, channeled through numerous bank accounts across different regions. Moreover, this case highlights the evolving complexity of monitoring financial transactions in the digital age.

Read Also: Levana Suffers Major Hack, Assures User Positions Remain Safe

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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