Chinese authorities freeze some 4,000 cryptocurrency accounts
The region's police investigates a telecommunications fraud case related to the OTC digital assets scheme
About 4,000 bank accounts in China were frozen because they were allegedly involved in money laundering.
According to the authorities, these accounts are from merchants who are in the OTC cryptocurrency business.
On the other hand, they stressed that one of the reasons for freezing these instruments is due to the alleged telecommunications fraud, which is under investigation by the Chinese police.
Capital from telecommunication fraud, gambling, and cryptocurrency scams can lead to a bank account freeze. Unfortunately, these are currently the main sources of income other than institutions. That is why the freezing of bank accounts may become more frequent in the future.
This is not the first time that there has been a case of money laundering through OTC cryptocurrency trading. Authorities recently stopped a major digital asset scam network that was suspected of using the same mechanism.
Scammers created a fake Huobi website to scam, and then launder OTC money to transfer money obtained from the illegal action to an overseas account, according to local police in Guangzhou, a city in southern Guangdong province from China.
K. Tovar
Source: CriptomonedaseICO
