In Chengdu, China, police discovered a secret operation worth $1.9 billion involving Tether, a popular digital currency. The scheme involved using Tether to move money illegally, and it has led to the arrest of 193 people across China.

The police report revealed that this underground banking activity started in January 2021. It mainly focused on moving money out of the country by trading Tether for other currencies. The operation also dealt with smuggling items like drugs, cosmetics, and investments overseas. Authorities shut down two illegal operations and froze $20 million linked to these activities.

Despite China's strict ban on cryptocurrency, Chinese investors have still found ways to use digital currencies. A recent study found that many Chinese investors own stablecoins, which are digital currencies with a stable value. Chinese investors rank second globally in stablecoin ownership, showing their interest in cryptocurrencies despite the ban.

The Chinese government has banned various cryptocurrency activities, including Bitcoin mining and trading. However, people in China have found ways to get around these bans. Even though China used to be the biggest Bitcoin mining location, it still contributes a significant amount to the network's computing power. Additionally, after centralized exchanges were banned, Chinese investors turned to decentralized ones. They even use virtual private networks to access these exchanges despite the ban.

In conclusion, despite China's efforts to ban cryptocurrencies, people in the country are still finding ways to use them. The recent bust of the Tether scam shows that illegal activities involving cryptocurrencies are still prevalent in China.