Chinese Court Jails Five for $1.18 Billion Illegal Crypto Trading

Highlights:

• Beijing court sentences five people for a $1.18B crypto-based forex operation.
• Prosecutors traced hidden transfers by linking blockchain records with banking data.
• Their new evidence plan now ensures fair and accurate handling of crypto cases.

The Haidian District People’s Court in Beijing has sentenced five individuals to prison for running an underground cross-border foreign exchange network worth more than $1.18 billion. They used cryptocurrencies to disguise illegal transfers between China and foreign entities. All defendants pleaded guilty to the charges and accepted prison terms ranging from two to four years. None of them plans to appeal their sentences, according to a report published by the Beijing Municipal People’s Procuratorate on October 28.

Advertisement

Investigations revealed that about two years ago, the group carried out multiple illegal currency conversions using cryptocurrency. Evidence showed that Lin Jia, along with associates Lin Chen, Bao, Yi, and Xia, used multiple personal bank accounts connected to an illegal foreign exchange company. These accounts received large amounts of Chinese yuan from clients such as Liu and others before being converted into digital assets.

北京检察院披露借助虚拟货币变相买卖外汇案：涉案金额超11亿元

买美股算不算？？

— 茄哥币富 🔶BNB🔶DOGE (@qqzsss) October 29, 2025

Crypto Used to Mask Transfers

Investigators reported that Lin Moujia and partners exchanged the received RMB into Tether (USDT) through several accounts they controlled. These funds were then shifted overseas via crypto platforms to conceal the true nature of their forex operations.

The Beijing Municipal People’s Procuratorate said the group moved amounts between 149 million RMB and 469 million RMB. It also acknowledged the rising difficulty of detecting similar crimes because of the secrecy and cross-border nature of crypto trading.

According to the BMP, their new approach combines financial and blockchain data analysis to uncover hidden fund flows. The method compares timing between bank activity and crypto transactions, enabling real-time identification of unusual patterns.

Prosecutors Adopt New Tech Framework to Trace Hidden Crypto Crimes

The BMP said that handling such cases requires new strategies due to the high concealment of crypto transactions and the difficulty of obtaining overseas data. To address this, prosecutors developed a specialized evidence-gathering framework combining technology and financial tracing.

The procuratorate now cross-checks data between bank accounts and crypto wallets to detect unusual fund movements. This real-time tracing method has helped authorities identify and track suspicious activity faster and with more precision. Technical experts also play a major role by remotely examining data obtained from foreign investigations. The process ensures full legality and authenticity of collected information, forming a reliable base for prosecution.

The procuratorate announced a new evidence collection plan to help investigators gather data more accurately and fairly. The approach aims to address challenges in cross-border cases, especially those involving large financial transactions or multiple participants. It further stated that the review of audit reports and financial records has been improved. Through blockchain verification, prosecutors can now clearly identify each suspect’s role. This refined process supports fair convictions and strengthens the handling of crypto-related crime cases.

Advertisement