Chinese Authorities Break Up $1.5 billion Cryptocurrency Gambling Ring

On Thursday, Chinese authorities have shut down an illegal gambling racket hosting worth more than $1.5 billion of crypto bets. Dark web gambling ring was betting on the World Cup and accepting BTC, LTC or ETC as a payment.

The South China Morning Post claimed that this was the initial prime Chinese gambling ring to make use of cryptocurrencies.

Demolish Gambling Rings in China

The Guangdong Province police mentioned that the total funds involved were around 10 billion Yuan i.e. (1.5 billion U.S. dollars). In accordance with the local authorities, the shutdown grabbed 20 gangs. However, they were involved in arranging illegal betting for the football matches in the world cup.

Xinhua”- the China media house was the first to report this news. Although gambling is not legal in many sectors of China, there are few specified locations to gamble.

During the investigation, China authority has arrested six core supporters conducting the operation. The police have also frozen five million Yuan which are roughly around $750,000. Apart from this, they have also seized digital currencies worth $1.5 million.

The authorities have also confiscated some hardware devices such as computers, servers, cell phones, and bank cards. The outcome of the raid- 250 online groups with 70 mobile apps/websites were shut down.

Cryptocurrency Craze Fuses with the World Cup Fever

In a bet to catch the gamblers, the Guangdong authority formed a task force and assembled 21 teams. They comprised of the public security members to nab the culprits across the Guangdong state.

Guangdong province law enforcement stated that during the working of eight months, the site drives around 330,000 users from various distinct countries. Chinese police said that the syndicate’s ringleaders enjoyed the benefits of China’s lax regulations governing cryptos to gain massive profits.

Also, the accused worked solely on the dark web and operated transactions via Bitcoin, Ethereum, and Litecoin. The police noted that the gamblers had a huge network of 8,000 agents. The agents were paid commissions to recruit new “members,” building a crypto pyramid scheme.

The press note stated:

“The relevant person in charge of the Guangdong Provincial Public Security Department’s network police corps said […] At the same time, it is an illegal and criminal act [….] Please ask the fans to watch the ball rationally and consciously resist gambling crimes.”

Chinese law authorities have commenced on a campaign to root out all the gambling rings behind the World Cup. Also, reported that they have already arrested 540 suspects while seized 260 million Yuan.

Is Government’s Decision Going Right?

Guangdong authority says the action was an act of the “Online Clean and Secure” operation. This act was set up to target illegal gambling at the time of the World Cup.

An instance like these justifies China’s grip on the crypto industry, which has been scowled by the darknet financier. The country remains strict in regards to the cryptocurrency shut down.

The authority recognized concerns that cryptos were not regulated and could be a wreck on the Chinese economy. The Chinese central bank has also announced that trading between Bitcoin and Yuan is less than one percent of the whole Bitcoin trades.

Despite Chinas’ status for illegal dealings, Bitcoin and majority of cryptos have many legitimate uses. This can either be a simple hobby or by means of purchasing any brand products. Bitcoin had a tough time so far; however, the tech behind it will always remain in existence. Meanwhile, China continues to support and enhance blockchain technology.

What do you think will be the next surprised plan of China regarding the gambling racket? Was this the right way to implement the operation? Share your views in the comments section below!

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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