More than $2. 2 B in illegal money laundering in China

NEW YORK - Digital addresses of more than $2.2 billion worth of illegal funds were sent by the blockchain service Chainalysis to addresses linked to illegal activity such as scams and darknet operations between April 2019 and 2021, according to a statement by the Cryptocurrency Exchange Platform (CCPS) that was released on Tuesday. These addresses were as well receiving $2 billion in cryptocurrency from illegal sources, making China a large player in anti-digital crime, it added. This report analyzes China's cryptocurrency activity with government crackdowns. However, China's transaction volume with other addresses has been declining drastically over the two-year period in terms of real value and relative to absolute countries, Chainalysis said. The big reason is the absence of large-scale Ponzi schemes such as the 2019 scam involving crypto wallet and exchange PlusToken that originated in China, it stated. Users and customers lost an estimated $3 billion to $4 billion from the PlusToken scam. The vast majority of China's illicit fund movement in crypto has been related to scams although that remained as well, according to the report from Chainalysis. The report also recommended fentanyl shipping out of China, a very potent narcotic pain medication prescribed for severe pain or pain after surgery. Chainalysis described China as the hub of global fentanyl trade, with many Chinese producers of the drug using blockchain to carry out transactions. China is another disproportionately regulated form of crypto-based crime, chainalysis said. Almost all cryptocurrency money laundering involves over-the-counter digital currency exchanges, often through mainstream counters built around these platforms, whose businesses are built on top of these platforms. Chainalysis reported that China appears to be taking action against businesses and individuals facilitating this activity. It cited Zhao Dong, founder of several UTC companies, who pleaded guilty to the money laundering charges in May after being arrested last year after pleading guilty.