China convicted a man for a $13,067 Tether transaction, reflecting the China’s stringent crackdown on all crypto activities.
China continues to show its firm stance against cryptocurrency activities. A recent case highlights the Chinese authorities’ unwavering approach, convicting an individual for engaging in a seemingly small but illegal cryptocurrency transaction.
The Incident: A $13,067 Tether Transaction
Mr. Chen, a Chinese citizen, found himself in legal trouble for assisting an acquaintance in buying Tether (USDT), a type of cryptocurrency. Moreover, the total value of the purchase reached $13,067, and this transaction led to a conviction by the Fuzhou Mawei People’s Procuratorate.
What happened? Mr. Lin, an acquaintance of Mr. Chen, approached him in February 2022 to buy Tether using Mr. Chen’s bank details on WeChat. Mr. Chen complied, receiving several money transfers from Mr. Lin, which he used to buy the requested USDT. He then sent these digital coins back to Mr. Lin, earning a small commission of $20.26.
The authorities caught wind of this and charged Mr. Chen with an “offense of concealment and concealment of crime.” They sentenced him to nine months in prison, deferred for a year, and a fine of $689.
China’s Broader Crackdown on Crypto Activities
This incident may seem minor, but it’s part of China’s wider campaign against cryptocurrency. China is going beyond targeting criminal activities and is looking to control all aspects of digital currency in the country.
A notable example is the shutdown of the $1.5 billion Multichain protocol by Chinese police. Moreover, assets were swapped into privacy coins and stablecoins without explanation, highlighting the extent to which the authorities are prepared to intervene.
Moreover, China’s crypto ban has caught the attention of experts who link technologies such as blockchain and artificial intelligence to fraudulent activities and data theft.