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- Beijing court sentenced five people to prison for illegal foreign exchange operations using USDT.
- The case involved disguised cross-border transactions worth over $166 million.
- Authorities developed advanced evidence systems to address digital currency-related crimes.
A Beijing court has sentenced five individuals to prison terms ranging from two to four years for their role in a large-scale illegal foreign exchange operation. The group used Tether (USDT) to move funds across borders. Bypassing traditional channels and disguising the transactions as virtual currency trades.
The case, involving more than $166 million, highlights the growing concern over the use of digital assets in unlawful financial activities. It marks a significant moment in China’s broader efforts to control capital outflows and ensure the stability of its financial system.
According to the report released during the 2025 Financial Street Forum Annual Meeting. This case was among 13 typical examples presented by the Beijing Municipal People’s Procuratorate to demonstrate progress in financial risk prevention.
Beijing Court Sentences Five in $160 Million USDT Exchange Case
Investigations revealed that between January and August 2023, the defendants, including Lin Jia and four associates, used several bank accounts to collect large sums of renminbi from clients tied to an underground currency exchange network.
The group converted these funds into USDT using multiple crypto trading platforms under their control. The tokens were then transferred abroad, completing what prosecutors described as a disguised foreign exchange transaction.
Authorities calculated that the total amount of illegal dealings exceeded 1.18 billion yuan, with each defendant involved in transactions ranging from 149 million to 469 million yuan.
In December 2024, the Haidian District People’s Procuratorate filed formal charges. By March 2025, the court sentenced the group for illegal business operations and imposed additional fines. All defendants accepted the judgment, which has since taken effect.
Beijing Adopts Tech-Driven Tools to Track Digital Financial Crimes
The case underscores the challenges law enforcement faces in tracking digital financial crimes. The Beijing Municipal Procuratorate responded by improving investigative methods and adopting data-driven tools to trace cross-border fund flows.
A new model combining “technology empowerment and standardized review” allowed prosecutors to verify transactions from overseas platforms and ensure the legality of collected evidence. Specialists reconstructed data trails. Ensuring authenticity and completeness throughout the investigation.
Authorities also refined their approach to financial audits by mapping each transaction, from initial fund receipt to crypto conversion and cross-border transfer. This approach produced a solid evidence chain, leading to accurate sentencing.
In recent years, Beijing’s financial prosecutors have emphasized high-quality, efficient case handling. By integrating technology and deepening cooperation with security agencies. They aim to safeguard China’s financial stability while maintaining strict oversight of emerging digital finance risks.
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