Beijing Police Uncovers Illegal Sale of Citizen Information Involving $282M Worth of Crypto
The investigation spanned 15 provinces and cities, including Beijing, Shanghai and Zhejiang, and uncovered more than 2 billion yuan ($282 million) worth of cryptocurrency transactions, according to a report from Chinese media outlet CCTV
Beijing police, working with the Beijing Branch of the State Administration of Foreign Exchange of China, have uncovered a series of cases of illegal sale of citizens' personal information using cryptocurrencies.
The investigation spanned 15 provinces and cities, including Beijing, Shanghai and Zhejiang, and uncovered more than 2 billion yuan ($282 million) worth of cryptocurrency transactions, according to a report from Chinese media outlet CCTV.
The report says the case stands out for its stealth and varied criminal methods, representing a complex "serial case" spanning activity from dark web transactions to illegal currency exchange operations.
Evil actors are using cryptocurrencies to illegally sell various personal data of Chinese citizens.
Liang Fei, an investigator from the Economic Division of the Beijing Municipal Police, told CCTV that certain individuals formed several groups using an overseas chat room, openly selling the personal information of citizens within these groups.
This information included ID numbers, mobile phone numbers, residential addresses, etc.
These information trading groups had hundreds of members, and millions of citizens' personal data were exchanged within them.
Transactions were strictly limited to virtual currencies, and preliminary police assessment suggests the buyers may have been foreign institutions.
The potential consequences of mass leaking the personal information of overseas Chinese citizens to criminals abroad are serious, as this information could be used to carry out targeted scams targeting ordinary people.
For example, some online gambling platforms target high-income groups by sending them links to their mobile phones.
Police arrest suspect conducting cryptocurrency transactions
During the investigation, police discovered that a suspect named Yang Mumu was conducting all transactions involving the sale of citizens' personal information using virtual currencies.
The scale of the exchange of cash for virtual currency has attracted the attention of authorities.
Lunan, an investigator from the Economic Crimes Division of the Haidan Branch of the Beijing Municipal Police, said that the source of Yang's funds was extremely complex, consisting of several sources.
This distinguished him from ordinary currency speculators.
As virtual currencies quickly moved from one hand to another, it was assumed that Yang was not a speculator, but a money launderer for underground banks.
As the investigation progressed, the police discovered that Lin, who assisted Yang with the exchange of funds, had been involved in illegal currency exchange transactions using virtual currencies for a long time.
However, further investigation revealed that Lin Mumu was not the true mastermind of the criminal operation.
There was another higher level behind the scheme, and Lin and this high level person had never met before.
Last year, authorities in China's Shanxi province arrested 21 people allegedly involved in a massive money laundering scheme involving Tether (USDT).
The scheme, valued at more than $54 million, used the US dollar-backed stablecoin USDT to launder money.
