Chinese police detain crypto over-the-counter (OTC) traders to support investigations for stopping illegal economic activities.
In the last operation, Zhao Dong, an important OTC trader, Bitfinex shareholder and co-founder of RenrenBit crypto lending platform, was detained. The company’s representative stated that the entire team of an OTC platform, which he did not want to name, was also detained last month, but the operations were not explicitly done.
RenrenBit also announced that Zhao has invested in the OTC team but does not work with them every day. Returning from Japan in June, Zhao is currently working “together” with anti-money laundering and anti-fraud operations with local police units.
A person who spoke to the media and did not want to be named because of the seriousness of the investigation said that these detentions created fear between OTC traders and service providers.
Before this operation in China, more than a thousand people and OTC exchanges were frozen in June due to money laundering and fraud.
Cryptocurrencies and especially USDT are very popular assets in China for fraud and money laundering organizers. Since these coins are used too much in OTCs, operations are generally carried out in this direction.