Chinese authorities break up billion-dollar crypto money laundering ring: China News

Police in Inner Mongolia have arrested 63 people in association with a scheme that allegedly laundered 12 billion yuan ($1.7 billion), China News reports.

Following an investigation into unusual money flows from construction firm Shi Mouyuan, authorities reportedly discovered a wide network that operated internationally and "converted funds suspected of online pyramid schemes, fraud, gambling and other crimes into virtual digital currency."

Led by the Horqin Branch of Tongliao Public Security Bureau, the investigation spanned 17 provinces. One suspect, Zhang Mou, has fled to Bangkok.

China formally barred the use of cryptocurrencies in 2021. Earlier this week, Hong Kong established a new regime to regulate cryptocurrency exchanges.