China Dismantles Underground Bank Using USDT for Foreign Currency Exchanges

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Police in Sichuan province, Southeast China, have broken up an underground bank that utilized the USDT stablecoin for foreign currency exchanges, involving transactions totaling at least 13.8 billion yuan ($1.9 billion).

The Chengdu city police released a state media report on Thursday, noting that the criminal network primarily catered to individuals smuggling medicine and cosmetics or those aiming to acquire assets abroad.

In connection with the case, 193 suspects have been arrested across the country, and authorities have frozen assets worth 149 million yuan, according to the report.

Underground banking refers to the transfer of money using informal methods instead of official channels.

The criminal organization, led by individuals with the surnames Lin, Weng, and Chen, allegedly began employing the USDT stablecoin for illicit currency exchanges in January 2021.