Chinese Wallet Addresses Sent $2.2 Billion Worth of Digital Tokens to Criminal Syndicates

Chainalysis is a blockchain transparency and security project. A recent report published by Chainalysis unveiled a massive cryptocurrency-based scam originating from China. The report published last Tuesday reveals that digital assets valued at $2.2 billion have been transacted during 2019 and 2021. All of these transactions were made with digital wallets addressed originating from China.

A huge matter of concern about these transactions is that most of them were made used in cybercrimes, crypto scams, and dark web operations. By contributing such a huge amount in lieu of crypto crimes, China has become one of the biggest contributors in the world in this discipline. The report also took a detailed look at the changes made by the Chinese government during the ongoing crypto mining exodus.

Cryptocurrency Scams have Declined in China in the Last Two Years

The blockchain transparency projects claimed in a newly published report that amount of crypto-related crimes have declined in the last two years. According to the report, this has happened due to the discovery of a massive crypto scam in China called Plus Token. This Ponzi scheme-type project deceived investors by posing as an exchange and digital wallet service.

The investors based in China ended up losing 3-4 billion dollars in the aftermath of this mage cybercrime and crypto scam. With the uncovering of such an event, both the investors and the regulators have started to monitor crypto-related projects with more care and caution than ever before. Furthermore, the massive coverage in media also allowed the people in China to get more educated about such scamming projects and remain safe against such attempts.

The government of China has enforced a crypto mining exodus in the region for the last few months. According to Chainalysis, the local regulatory authorities have grave concerns about the increasing Money Laundering and Tax Evasion schemes. On the other hand, some illegal streams of digital assets also facilitated the trafficking of illegal chemical substances like Fentanyl and narcotics. Recently, Zhao Dong was apprehended by the Chinese law enforcement agencies for conducting fraud last year. Dong was responsible for running several OTP projects. He was facing charges for white-collar crimes purported by the Chinese regulators. Dong has recently pleaded guilty to money laundering allegations and looking at a long period behind bars.

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