China Arrests Over 1100 Suspects Linked To Cryptocurrency-Related Money Laundering

Chinese authorities have nabbed more than 1,100 suspects for using cryptocurrencies to launder money illegally gained from telephone and Internet scams, China’s Ministry of Public Security said, according to Reuters.

The arrests seem to be a continuation of Beijing’s broader crackdown on cryptocurrency, which last month saw banks and payment firms banned from offering crypto-related services. China already bans cryptocurrency exchanges and initial coin offerings (ICO), but is testing its own central bank-backed digital currency.

The ministry announced the police had busted over 170 criminal groups which used cryptocurrencies for money laundering. It also said the launderers charged their criminal clients a commission of 1.5% to 5% to convert ill-begotten funds into digital currencies via cryptocurrency exchanges.

China’s Payment and Clearing Association described cryptocurrencies as an increasingly “important channel for cross-border money laundering” due to their anonymous, convenient and global nature, Reuters said.

Despite the strides made by cryptocurrencies at gaining public acceptance in the recent years, they seem to be hitting a rough patch right now. In addition to China’s intensifying hostility to cryptocurrency, Elon Musk’s Tesla reversed its decision to accept bitcoin as payment for cars.

One bright spot is that El Salvador has now adopted bitcoin as legal tender, perhaps encouraging others to follow suit.

Japan Suspects China’s Involvement In Cyberattacks That Hit 200 Organisations

The Japanese government suspects that hackers linked to China’s military launched cyberattacks against 200 Japanese companies and research organisations, including the country’s space agency. According to the Associated Press (AP), authorities believe that “Tick”, a Chinese hacking group working at the behest of a unit of the People’s Liberation Army, attempted to breach the Japan Aerospace Exploration Agency (JAXA) in 2016 and 2017.

Police think that a Chinese systems engineer based in Japan gained access to a rental server by assuming a false identity to launch the cyberattacks, revealed Japanese Chief Cabinet Secretary Katsunobu Kato. Meanwhile, the AP – citing a NHK report – said a Chinese national who was in Japan as an exchange student was also investigated for suspected links to the PLA unit. Both men are reportedly no longer in the country.

“The involvement of China’s People’s Liberation Army is highly likely,” said Kato, adding that no data theft or damage have been uncovered so far.

Unsurprisingly, China pushed back strongly against allegations that it was the responsible party. “Groundless speculation should not be allowed. China is firmly opposed to any country or institution using cyberattacks to throw mud at China or to serve the despicable political purposes with cybersecurity issues,” said Chinese Foreign Ministry spokesperson Wang Wenbin.

Last month, Tokyo began investigating popular private messaging app Line for allegedly allowing Chinese engineers to assess Japanese users’ data. Later, the government temporarily halted its use of the app for the handling of sensitive information, Reuters said.