1,100 Arrested In China: Operation “Broken Card”
1,110 arrested in China for using cryptocurrency to launder “illegal activities” in an operation dubbed “Broken Card”.
CHINA ARRESTS 1,100 PEOPLE ALLEGEDLY USING CRYPTOCURRENCY TO LAUNDER CRIMINAL PROCEEDS
The Broken Card operation has focused on telecommunications network fraud, specifically the sales of phone and payment cards and money laundering services.
Police efforts have uncovered how crypto criminals have laundered the criminal proceeds from their illegal activities.
Often they employ the use of “coin farmers” who sign up and set up personal accounts with various cryptocurrency exchanges. The farmers are then issued funds by their handlers which they use to buy and sell virtual currencies as they have been instructed. Those currencies are then sent to the wallets of gang members.
As a reward for their efforts in hiding the criminal proceeds, the coin farmers can obtain 1.5 to 5 percent commissions. This type of illegal payout is lucrative enough to attract a great many participants causing significant social harm.