China Tightens Crypto Regulations: RenrenBit Founder Zhao Dong Sentenced to Seven Years
Summary:
The Supreme Procuratorate in China publicly disclosed the reasons behind a seven-year prison term for RenrenBit founder, Zhao Dong. Convicted of running an unauthorized crypto business and participating in illegal foreign exchange operations, the case underscores China's crackdown on cryptocurrencies. A thorough investigation mapping complex financial transactions linked to the alleged crimes was conducted using bank records, communication logs, confessions, and witness testimonies. Despite Zhao's defense claiming the transactions were digital currency trades, evidence indicated foreign exchange involvement. He was ultimately sentenced to seven years and fined 2.3 million Chinese yuan ($325,000).
The primary judicial authority in China, the Supreme Procuratorate, has shared the specifics of RenrenBit founder Zhao Dong's seven-year incarceration. Known for his establishment of the over-the-counter (OTC) crypto trading platform, he was engaged in trading between crypto and the local currency. Zhao, commonly recognized as the "OTC King," was found guilty on Dec. 27 for running an unauthorized crypto commerce and getting involved in foreign exchange activities. This event underscores China's constant clampdown on cryptocurrencies which remain proscribed in the nation. Zhao was ultimately convicted for running an exchange business associated with the legal currency along with cryptocurrency, resulting in a seven-year prison term.
Chinese authorities have reportedly revealed a meticulous investigation, disentangling a network of elaborate financial transactions with a focus on the accounts linked to the supposed offences. They sourced bank documents, communication records, confessions, and witness testimonies to construct a case against Zhao and his collaborators. During the three openly held court hearings, the defendants argued that their actions did not equate to foreign exchange trading but were classified as digital currency transactions and were not deemed illegal. However, the prosecutor provided evidence on foreign exchange found in the chat logs of Zhao and his group.
According to reports, several people confirmed the receipt of funds from Zhao were overseas payments. Zhao and his Dubai-based associates had gathered dirhams, remitted RMB to chosen accounts, purchased Tether with dirhams, and had the domestic operation resell it illegally for RMB. All defendants admitted to this. The final verdict was announced, sentencing Zhao to a seven-year jail term along with a financial penalty of 2.3 million Chinese yuan, equivalent to $325,000.
Published At
12/28/2023 4:40:50 PM
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