Shanghai prosecutors indict cross-border over-the-counter virtual currency exchange case involving over 200 million yuan, five sentenced

CoinFeed July 1 news, according to the "Jing'an Procuratorate" WeChat official account, the Shanghai Jing'an District People's Procuratorate recently indicted a case of illegal foreign exchange using virtual currency cross-border over-the-counter matching. The case spanned 3 years, involved over RMB 200 million, and the court has pronounced the verdict in court. Investigation found that Company Z was registered overseas in 2019, presented itself as a "private bank", did not obtain China's foreign exchange business license, and essentially engaged in illegal foreign exchange activities. The gang targeted high-net-worth individuals with needs for overseas property purchase, immigration, and study abroad, directed traffic through intermediaries, utilized the characteristics of anonymous virtual currency transactions and traceless on-chain circulation, completed the exchange through the "RMB—virtual currency—foreign exchange" over-the-counter matching mode, with no real cross-border capital flow, only the settlement of domestic and foreign capital pools respectively, and Company Z charged a 3% service fee.