Chinese police are scrutinizing the Web3 space more closely following a surge in personal identity theft and digital financial crime.
at a press conference host On August 10, Sun Jinfeng, political commissar of the Network Security Bureau of the Ministry of Public Security, said that in recent years, there have been many incidents of defrauding and stealing data by means of Trojan horse viruses, phishing websites, penetration tools, and network trackers in our country. Specifically, Sun said:
“(We have been) monitoring (using) Chat GPT, cloud computing, blockchain, deep fake artificial intelligence and other emerging technologies, new applications, new organizations (in these incidents). Strictly crack down on such methods when using them.
Justin Sun revealed that there have been 79 cases of fraud involving Deepfake AI, such as impersonation through digital face-changing, resulting in 515 arrests. On July 18, Shanxi police arrested 21 people are suspected of being involved in a $54.8 million money laundering scheme. The suspects allegedly purchased USDT from Chinese residents at a price below the market price, then sold them for legal tender on overseas exchanges, and deposited the difference in banks while transferring customers’ funds abroad. China imposes strict exit controls on capital, and Chinese citizens are not allowed to purchase foreign currency worth more than US$50,000 per year.
However, despite strict controls, some have accused Chinese police of misappropriating funds from crypto projects through law enforcement measures. Last month, cross-chain protocol Multichain was disbanded after its CEO He Zhaojun was arrested by the police. No information has been disclosed about his detention, while funds belonging to multi-chain developers and users have been converted into stablecoins and privacy coins and transferred out of exchanges.
Magazine: CNY Stablecoin Team Arrested, WeChat New Bitcoin Price, Hong Kong Crypto Rules
Svlook
