The People's Court of Longjing City, Jilin Province, China tried and sentenced four defendants for laundering RMB 789,000 through gold purchases and unlicensed cryptocurrency platforms.
This case underscores China's robust anti‑money laundering stance, targeting crypto‑related crimes, potentially influencing global regulatory practices and cryptocurrency market dynamics.
Four jailed for crypto laundering
Four individuals were recently convicted by the Longjing Municipal People’s Court for concealing fraud proceeds. The defendants purchased gold, cashed it out, and used illegal crypto platforms to launder the fraud proceeds. The total amount involved in the transactions surpassed RMB 789,000, with confirmed fraud‑linked funds exceeding RMB 452,000.
This legal action highlights China's reinforced efforts to combat cryptocurrency‑related crimes. The sentencing includes imprisonment of up to two years and fines up to RMB 20,000, reflecting strict enforcement measures. The case sets a significant milestone, as China's revised Anti‑Money Laundering law now explicitly targets cryptocurrency transactions as predicate offenses. In the words of the Jilin Provincial High People’s Court Official Statement, “Four defendants received 1‑2 year sentences for using gold purchases and unregulated crypto platforms to launder RMB 452,000 confirmed as fraudulent proceeds…”
There has been no official response from major crypto industry personalities or community developers concerning this case. However, the Higher People's Court of Jilin Province emphasized the importance of such rulings in their official statement, noting the reliance on blockchain forensics to trace funds.
Crypto Regulations in China: Historical Context and Expert Insights
Did you know? China's strict stance against crypto‑related money laundering has led to its first major judicial action under the revised 2025 AML law, drawing international attention to its approach on blockchain forensics.
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Experts from Coincu emphasize the broader implications of China's enforcement actions on crypto regulations. These legal proceedings could foster international commitments to blockchain transparency and influence future technological compliance strategies. The focus remains on preventing criminal exploitation within the global cryptocurrency ecosystem.