Police in Panshi City, Jilin Province, have successfully dismantled a significant underground bank operation involving virtual currency, uncovering a total transaction amount surpassing 2.14 billion yuan (approximately $317 million USD). The operation, orchestrated by six suspects, enabled illicit currency exchange between the Chinese yuan (RMB) and the South Korean won (KRW) by leveraging the anonymity and decentralized nature of virtual currencies.

The investigation was triggered when the Panshi City Public Security Bureau's Economic Investigation Brigade flagged suspicious activities tied to individuals Jin Moudong and Shen Mou. Further scrutiny unveiled a heightened volume of daily transactions, a substantial clientele base, and patterns indicative of underground banking operations. Subsequent to an exhaustive inquiry, authorities apprehended Jin Moudong, Shen Mou, and additional suspects, seizing a significant cache of bank cards and related criminal paraphernalia in the process.

It was revealed that the group executed illicit foreign exchange transactions through various means, including channeling funds through domestic accounts, engaging in over-the-counter (OTC) virtual currency trading, and exploring settlements in Korean won. These endeavors catered to a clientele such as Korean purchasing agents, cross-border e-commerce entities, and import/export firms seeking to convert RMB and KRW.

Further investigations and evidence-gathering efforts led to the arrest of the remaining suspects — Chen Mouguang, Luo Moutao, He Mouda, and Zheng Mouyu. This case underscores the mounting challenge posed by unlawful financial activities facilitated through virtual currencies. It also spotlights the efficacy of Chinese law enforcement in combatting such illicit operations, shedding light on the relentless endeavor to ensure financial security and integrity within the region.