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Chinese Court Seizes Cryptocurrency!

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ByMarcel Bich

Aug 24, 2023
Chinese Court Seizes Cryptocurrency!
Marcel Bich
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China achieved a milestone as authorities successfully froze $160 million in cryptocurrency through a court order. The local edition of Toutiao reported this development, citing details from the investigation. Law enforcement collaborated with a “virtual currency issuer” to seize the cryptocurrency, although specific details about the digital asset and the issuer remain unclear.

Cryptocurrency Mystery: Tether’s Role in Web Gambling and Chinese Connections

The exact identity of the cryptocurrency and its issuer remains shrouded in mystery. While Tether, the company behind the tether (USDT) stablecoin, has previously frozen USDT wallets due to suspected illegal activity, it is uncertain if it is related to this case. The news outlet indicated that the seized cryptocurrency was allegedly linked to web gambling sites. During the investigation, Beijing apprehended three suspects in connection with the incident.

Earlier this year, Chinese money changers reportedly stopped accepting USDT based on the TRON network’s TRC20 standard. Instead, they required customers to convert TRC20 to the Ethereum network’s ERC20 standard. The decision came amid concerns raised by U.S. blockchain firm Chainalysis regarding TRC20-based tokens, as disclosed by Chinese blockchain journalist Colin Wu.

In June, Bloomberg journalists uncovered that Tether’s reserves included short-term loans from Chinese companies valued at billions of dollars. Surprisingly, the issuer of the stablecoin had previously denied any ties to the Chinese market. According to the report, Tether held securities from major Chinese state-owned companies, such as the Industrial & Commercial Bank of China and China Construction Bank, with maturity dates in 2020 and 2021.

 
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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.