Crypto Confiscation: Chinese Police Seize $160 Million, Raises Concern for 58 Million Users

China has taken a major step in its crypto regulation, with a court ruling ordering the confiscation of nearly $160 million worth of crypto assets from a gambling platform, solidifying its position as the second-largest crypto user nation with 58 million users.

China has taken a hard stance against crypto, and on Tuesday, the country made its first crypto asset confiscation via court ruling, seizing nearly $160 million worth of crypto from a gambling platform. This move comes despite the government’s launch of its own Metaverse platform and the 58 million users in the country. The Chinese government’s anti-crypto stance has been a cause of concern for its many users, and this latest move is likely to further fuel the debate.

Chinese Police Seize $160 Million in Crypto in Landmark Case

In a landmark ruling, Chinese police have confiscated nearly $160 million worth of cryptocurrency in the country’s first case of digital asset seizure. The case involved an online gambling ring with more than 5 people involved and a server set up overseas. The perpetrators used virtual currency as a method of money laundering, making it difficult for authorities to trace. The case’s primary backbone is suspected to be overseas, involving an estimated amount of 4,000 billion. The case underscores the significance of digital asset monitoring and international cooperation in tackling money laundering.

Mission to Investigate Crime and Implement Preventive Measures

In 2021, despite China’s anti-crypto stance, it remained the second-largest crypto asset user nation with 58 million users. Deputy Mayor Chen Shi formed a special case team to investigate a crypto-related crime in Jingmen City. The team’s mission is to investigate the crime and implement measures to prevent future occurrences. The team is also expected to provide guidance on how to better regulate the crypto industry in the country. The move aims to enhance crypto industry regulation in China, potentially fostering wider digital asset adoption ahead.

Promotion of Central Bank Digital Currency (e-CNY)

China has recently launched its own government-backed Metaverse platform called the “China Metaverse Technology and Application Innovation Platform“. The platform promotes China’s Central Bank Digital Currency (e-CNY) and revolutionizes the country’s digital payments landscape. Although China is against the anonymity that comes with cryptocurrencies, it is actively embracing the technology behind it. The Metaverse offers secure digital payments and a platform for developers to create innovative applications. China’s Metaverse launch positions it as a digital payments leader, potentially impacting the global economy significantly.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.