The Chinese police have busted a criminal group allegedly involved in the money laundering of nearly 200 million yuan (US $28 million) using the e-CNY, the nation’s new central bank digital currency (CBDC).
The police in the Chinese city of Longyan took advantage of the digital yuan’s “managed anonymity” feature to identify and arrest 20 suspects.
The police allege that the suspects used the e-CNY and virtual tokens to offer illegal fund settlement services for overseas gambling and telecom scam activities.
Richard Turrin, a Shanghai-based fintech consultant said, “These definitely are the world’s dumbest thieves.”
Turrin says that there is no way for a criminal to effectively launder the digital yuan, as the authorities could track transaction history if they obtain a warrant.
Scams and money laundering related to e-CNY have risen across the country in the past year.
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