In a significant crackdown on illicit cryptocurrency activities, China’s Supreme People’s Procuratorate (SPP) has sentenced Zhao Dong,
The founder of RenrenBit and known as the “OTC King,” to seven years in prison for operating a cryptocurrency business and engaging in unlicensed foreign exchange transactions.
The investigation conducted by the Chinese legal prosecution agency, the State Administration of Foreign Exchange (SAFE), involved a thorough examination of financial transactions using bank records, communication logs, confessions, and witness statements.
Despite Zhao and associates arguing that their activities were digital currency transactions, not foreign exchange trading, prosecutors presented chat records suggesting otherwise.
However, the prosecution presented evidence from chat records confirming their involvement in foreign exchange. The court ultimately imposed a seven-year prison sentence on Zhao and a fine of 2.3 million Chinese yuan ($325,000).
This case highlights China’s continued crackdown on cryptocurrency, as it remains illegal in the country.
Also Read: China Intensifies Fight Against Crypto Fueled Illegal Forex Trading
