Local Chinese authorities have frozen up to 4000 Chinese bank accounts owned by crypto traders.
The seizures began on the 4th of June and were reportedly enforced due to the growing trend of illegal activities carried out by many crypto over-the-counter traders. Reports suggest that a lot of these transactions were facilitated through Tether’s USDT.
An investor revealed that he noticed the account seizure shortly after he purchased cryptocurrency from a trustworthy exchange platform. In total, nearly 4000 crypto traders have lost access to their accounts. The clampdown took place in the Chinese province of Guangdong.
According to a report from the Chinese crypto news platform, 8BTC, the over-the-counter crypto traders facilitated several illegal activities such as money laundering and gambling. The report also adds that in addition to the seizures, local police are learning blockchain analysis to enable them to isolate accounts and track crypto transactions.
All frozen accounts are currently under investigation and any accounts found fraud-free will be restored after the investigation. All traders would however have to provide evidence to local authorities that they do not participate in any fraudulent activities.
Crypto has long been used in illicit activities because of its anonymous nature which makes it very difficult to trace.
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