Chinese Police Arrest 16 in Crypto Money Laundering Gang Bust

Zhanjiang authorities dismantle a cryptocurrency-based money laundering ring linked to telecom fraud, detaining 16 suspects involved in illicit fund transfers.

Woofun AI reports that public security authorities in Zhanjiang and Leizhou, Guangdong Province, have dismantled a criminal gang utilizing cryptocurrency transactions to launder funds derived from telecommunications fraud. The operation resulted in the criminal detention of 16 individuals.

Led by He and Zhang, the group operated since late 2025, exploiting price differentials in crypto trades while aggregating bank cards and payment accounts for illicit transfers. Police executed a cross-regional raid on July 24, disrupting the network. Authorities warned that participants face charges including aiding cybercrime and concealing proceeds, urging the public to avoid renting payment accounts.