- A Chinese individual was sentenced to nine months in prison for helping a friend purchase Tether (USDT) and earning a commission.
- Chinese authorities crack down on crypto due to capital control rules and concerns about money moving out of the country.
- Chinese police raided an online poker platform that had laundered over 400 billion Chinese yuan using cryptocurrencies.
- Crypto projects and their Chinese founders are disappearing, with allegations of intimidation and seizure of funds.
- The Chinese government is promoting the adoption of the central bank digital currency (CBDC) to revitalize the economy.
- Creditors of Three Arrows Capital faced setbacks in litigation due to jurisdictional issues.
- 3AC liquidators filed a committal order against co-founder Zhu Su.
On August 11, a Chinese individual known as Mr. Chen was sentenced to nine months in prison for helping his friend purchase Tether (USDT) and earning a commission. The Chinese authorities considered this act of sharing personal bank information for a peer-to-peer fiat-to-crypto transaction as money laundering.
The crackdown on crypto in China is attributed to capital control rules and concerns about money moving out of the country. Chinese nationals are prohibited from buying more than $50,000 worth of foreign currencies each year without a state permit. Large-sum Chinese yuan transactions with foreign banks also require a state permit.
Chinese police raided an online poker platform in Jingmen, discovering that it had laundered over 400 billion Chinese yuan using cryptocurrencies and involving over 50,000 individuals. Gambling itself and the transfer of currencies abroad without applicable permits are deemed illicit activities in China.
Chinese crypto projects and their founders have been disappearing at an alarming rate. There are allegations of the police resorting to intimidation to force confessions and the surrender of project private keys, resulting in sham trials and the seizure of funds.
The Chinese government is promoting the adoption of the central bank digital currency (CBDC) to revitalize the economy. They have conducted a series of digital yuan airdrops in different cities, which have shown positive results in increasing consumer spending.
In litigation involving Three Arrows Capital (3AC), creditors faced setbacks due to jurisdictional issues. Some creditors allege that funds held with DeFiance Capital belong in the estate of 3AC, while DeFiance Capital claims that its assets belong to its independent investors.
Finally, 3AC liquidators have filed a committal order against co-founder Zhu Su in the Singaporean court.
