Nanchong Police Bust Crypto Money Laundering Ring, Arrest Five
Nanchong police in China dismantled a crypto money laundering ’run-fund’ ring, arresting five suspects including ring leader Wang. The group transferred illicit funds through bank cards and settled fees in cryptocurrencies after responding to ’high-paying’ recruitment ads. Coordinated by Wang and funded by Wu, the network engaged in cross-border money flows for overseas fraud syndicates. Over a one-month probe, investigators gathered evidence and detained all members, who confessed to running transactions for external scammers. The case underscores China’s intensified crackdown on crypto money laundering and could signal tighter regulatory oversight in the crypto sector.
Bearish
The crackdown by Nanchong authorities on a crypto money laundering ’run-fund’ ring could exert bearish pressure on the cryptocurrency market. Although the operation targeted criminal activity rather than general trading, it underscores intensifying regulatory scrutiny in China, which historically has triggered market downturns (e.g., 2017 ICO ban, 2021 crackdown). In the short term, traders may react cautiously, reducing speculative positions to avoid regulatory risks. Over the long term, sustained enforcement actions could lead to greater market stability by deterring illicit usage, but also possibly limit institutional adoption if compliance costs rise. Overall, the announcement contributes to negative sentiment, aligning with a bearish outlook for crypto assets in China’s jurisdiction.