Investment Fraud in Tianjin, China: Over 128,000 Victims
Criminal Proceeds Converted to Bitcoin and Transferred Overseas
A businessman who committed large-scale cryptocurrency fraud in China, pocketed massive criminal proceeds, and then fled to the United Kingdom has ultimately admitted to the charges against him.
On October 1 (local time), the BBC reported that Chen Zemin, a 47-year-old Chinese national businessman known by the alias "Yadi Zhang," admitted to his crimes at Southwark Crown Court in London on September 29.
Chen Zemin is accused of illegally acquiring cryptocurrency. According to reports from the London Metropolitan Police, which investigated the case, and Chinese media outlet Caixin, Chen Zemin recruited victims in China from 2014 to 2017 by promising them opportunities to invest in risk-free, high-return financial products, and then defrauded them of their money. The number of victims who sent money to Chen Zemin, falling for his scam, exceeds 128,000.
He converted the criminal proceeds he obtained into Bitcoin, transferred the funds overseas, forged documents, and fled to the United Kingdom, where he purchased real estate. It has also been reported that there were indications he attempted to launder the funds during this process.
Chen Zemin, who committed fraud crimes in China and embezzled criminal proceeds worth approximately 10 trillion won. London Metropolitan Police
The BBC explained, "Most of Chen Zemin's victims were middle-aged and elderly individuals between the ages of 50 and 75," and added, "Chen Zemin spent amounts ranging from hundreds of thousands to tens of millions of yuan solely on promoting the fraud."
The criminal proceeds Chen Zemin obtained are equivalent to 61,000 Bitcoins. Applying the exchange rate in Korea as of October 2 (approximately 166 million won per Bitcoin), the total exceeds 10 trillion won. Chen Zemin's accomplice, a Chinese national named Yun Jian, also admitted to participating in the crime last year, was sentenced to six years and eight months in prison, and is currently serving his sentence.
The Crown Prosecution Service (CPS) in the United Kingdom announced that it had seized 300 million pounds (approximately 567 billion won) worth of Bitcoin and two properties valued at 500,000 pounds (about 950 million won) from Yun Jian.
Robin Wylie, the lead prosecutor for the case, stated that this case involved "the largest amount of cryptocurrency ever seized in the United Kingdom," and warned that "Bitcoin and other cryptocurrencies are being used to disguise the transfer of assets by organized crime."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
