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4,000 Chinese bank accounts are frozen due to their relationship with cryptocurrencies

June 10, 2020

Local banking authorities have reportedly frozen around 4,000 Chinese bank accounts from cryptocurrency traders.

According to an 8BTC report dated June 8th Police have frozen bank accounts for thousands of OTC traders in Guangdong Province, China.

Allegedly This is presented as part of a broader investigation into illegal activities such as gambling and money laundering, which 8BTC claims have typically been alleviated by trading OTC cryptocurrencies with Stablecoin Tether (USDT).

4,000 Chinese bank accounts are frozen due to their relationship with cryptocurrencies4,000 Chinese bank accounts are frozen due to their relationship with cryptocurrencies

According to the report, authorities began freezing bank accounts on June 4. A retail investor reportedly found his bank account frozen after buying cryptocurrencies from a credible major cryptocurrency exchange.

Frozen accounts are not guaranteed to conduct illegal activity and should be restored after an analysis of their activity has revealed no irregularities.

Local law enforcement officials are said to be learning blockchain analytics skills to track crypto transactions in the chain.

The involvement of cryptocurrencies in money laundering

Authorities can’t stop cryptocurrency transactions, and crypto purses don’t have to be tied to personal identities like bank accounts. Because of these characteristics, tech-savvy criminals occasionally use cryptocurrencies for money laundering purposes.

As Cointelegraph reported at the end of February, intSights, a threat intelligence company, claimed that cryptocurrencies are being used increasingly for money laundering in Latin America.

An Australian woman was arrested in May after selling Bitcoin (BTC) for cash. She is accused of laundering money since 2017.