China’s Crypto Crackdown Exposes Legal Risks in Six Cases
China’s crypto crackdown intensifies with recent prosecutions across six landmark cases targeting illegal forex trading, money laundering, fraud, pyramid schemes and hacking. In the largest illegal forex case, USDT trades worth over CNY2.34bn led to a 13.5-year sentence and fines exceeding CNY1m. Money laundering defendants faced charges for moving as little as CNY25,000 in crypto. A Gen Z trader, Yang Qichao, was jailed for 4.5 years and fined CNY30,000 after a BNB Chain rug pull that drained 300,000 BUSD and 630,000 BFF, causing a 50,000 USDT loss. Token-based pyramid schemes raising over CNY210m resulted in sentences up to six years. Even small-scale hacking proceeds under CNY150 triggered convictions. Traders must stay alert. Any rug pull, OTC arbitrage or aiding illicit transfers now carries severe penalties under China’s crypto crackdown.
Bearish
China’s intensified enforcement and landmark prosecutions heighten uncertainty around crypto operations in the region. In the short term, fear of legal repercussions may reduce trading volume on BNB Chain and mute speculative activity. In the long run, sustained regulatory pressure could deter new token launches and liquidity provision, undermining confidence in the affected chains. This diminishing trust is likely to exert downward pressure on BNB and related tokens, resulting in a bearish outlook.