TechFlow News, March 20: According to Huasheng Online, the Yuetang District People’s Procuratorate of Xiangtan City, Hunan Province, recently brought a prosecution in a case involving concealment and concealment of criminal proceeds. The first-instance trial concluded with all eight defendants sentenced; the total amount involved exceeded RMB 6.84 million.
The gang used sham Maotai liquor transactions as cover to launder proceeds from overseas telecom fraud through virtual currency channels, charging an illegal commission of 8% per transaction. Specifically, defendant Chen communicated with upstream fraud gangs via overseas encrypted instant messaging software, received illicit funds, and then coordinated with over-the-counter (OTC) cryptocurrency traders (“U-merchants”) to complete virtual currency exchanges and fund transfers; Huang concealed the trail of fund movement under the pretense of Maotai liquor procurement and sales; and Xie was responsible for providing operational tools and maintaining records of fund flows.
The case came to light in December 2023 after a victim filed a report. The procuratorate intervened early in the investigation, collaborating with public security organs to trace nearly RMB 20 million in fund flows and analyze massive volumes of electronic data—achieving full-chain打击 (crackdown). Ultimately, the court convicted Xie and six other principal and accessory offenders of the crime of concealing or disguising criminal proceeds, sentencing them to fixed-term imprisonment ranging from two to six years. Liang, whose circumstances were relatively minor, received a one-year prison sentence, suspended for one year.
