China’s crackdown on cryptocurrencies has reached a new crescendo, with the nation’s Ministry of Public Security on Wednesday proclaiming it has arrested over 1000 people and shut down 170 gangs that provided crypto-linked money-laundering services.
The Ministry’s announcement says it detected, and dismantled, gangs that provided money-laundering services to criminal organisations.
Some of those organisations allegedly laundered ill-gotten gains from other ventures by building coin-mining farms.
Others are what China calls “two cards” scammers, who funnel their ill-gotten gains to acquire phone cards that are shipped outside China, then use call credit stored in the cards to make scam calls back into the Middle Kingdom. The proceeds of those scams are laundered using cryptocurrencies.
The Ministry therefore asserted that its actions protected China’s citizens, phone…