China Smashes Gambling Ring, Seizes $160M in Crypto

With a loud bang, the police stormed the office. The surprise on the suspects’ faces was unmistakable as they were surrounded by the uniformed officers. Today, Tuesday (July 18), China completed an operation that began in 2021.

China: $160 million in crypto seized

The masterminds of an international criminal organization running a mobile app featuring chess, gambling and card games have been arrested in spectacular fashion. But that’s not all – a staggering $160 million in cryptocurrency was also seized during the raid. China, a country that bans cryptocurrencies and gambling, witnessed the collapse of an organization that encompassed crimes like money laundering and illegal gambling.

The operation began two years ago with a tip from a concerned person within the company. A Chinese citizen had observed his colleagues making enormous sums of money using a mobile app that included various games of chance, card games and even chess. Intrigued by this success, the citizen decided to download the app as well and try his luck.

At first it seemed to work – he was able to win money for a while. But then the tragedy took its course. The gambling frenzy drove the citizen to ever higher stakes, until he finally suffered a bitter loss of around 100,000 yuan (about 15,000 dollars). Desperate, he turned to the police and reported the heavy losses and the rapid spread of this mobile app.

Police break up international gambling ring

On July 28, 2021, the Chinese police then launched investigations and initiated extensive measures. After intensive investigation, it turned out that more than 50,000 people were using the app and there was money laundering activity through crypto. According to Chinese media reports , the investigation was difficult because the app’s servers were located outside of China and the managers operated from abroad.

But the Chinese police did not give up. With meticulous tracking of the money flows and detailed investigations, they gradually managed to uncover the Chinese branches of this organization. The operation accelerated as the target drew nearer. Today was finally the day when the ringleaders of the gang were caught in China.

In a spectacular action, they were brought to China from outside the country and arrested. But that’s not all – the police also hit the cryptocurrency accounts, confiscating the addresses and preventing the transfer of the digital currencies to other accounts. Over 130 people were arrested while searches seized 200 mobile phones, hundreds of bank and credit cards and 20 money counting machines.