- Authorities are investigating one of the founders of Hong Kong-based crypto exchange CEO Global.
- The investigation is due to China’s repression on fraudulent bank accounts.
- Chinese police have arrested more than 4,600 people.
The announcement added,
Due to the policy of “Card Broken Action” in mainland China, our core founder’s bank card received multiple cross-border “telecommunications network fraud” inflows of black money, which has been taken away by relevant authorities for investigation for 15 days.
Consequently, the platform will shut down all its over-the-counter (OTC) trading services. This is due to the risks related to uncertainties around China’s regulatory policies. Moreover, in October, the China cabinet State Council announced an international repression on fraudulent bank accounts and SIM cards.
Most scammers don’t reveal their identity when opening a bank account or SIM card. However, they purchase existing SIM cards and bank accounts registered under the name of others. Due to high fraudulent accounts demand, many are developing an industry to buy and sell these accounts.
According to a state media outlet CCTV report, the Chinese police have arrested more than 4,600 people. They also confiscated about 65,000 bank cards linked to fraudulent banking accounts. These actions happened within two weeks of the State Council’s announcement. In addition, authorities have forbidden over 15,000 people involved in the crimes from opening a new bank account in five years.
Recently, Chinese crypto reporter Colin Wu tweeted that some Chinese crypto miners might have difficulties in exchanging their mined cryptocurrencies like Bitcoin and Ethereum for the Chinese yuan to pay their electricity bills using a bank card due to the crackdown.