Millions in cash, cryptocurrencies seized
Chinese police have arrested six people suspected of running an illegal cryptocurrency gambling ring worth more than US$1.5 billion. It may be the first-ever bust of a crypto sports betting syndicate in China, reported Inside Asian Gaming.
The Guangdong Provincial Public Security Department said the ring operated on the dark web and attracted around 330,000 users. The gamblers placed bets on FIFA World Cup games using digital currencies including bitcoin.
According to a statement from law enforcement, around 5 million yuan (US$738,000) in cash and 10 million (US$1.474 million) yuan in cryptocurrencies were seized in the sweep. Police disclosed that they arrested more than 540 people suspected of being involved in online gambling rings; shut down more than 70 gambling apps and websites; and seized more than 260 million yuan in funds during the Russia World Cup.
Twenty-one raids were conducted in locations such as Guangdong, Guangxi and Sichuan.
“The online gambling crime gangs were closely organized, with a mostly pyramid-style organizational structure, recruiting agents at various levels, developing members at various levels and profiting from the middle members’ betting amount,” police said.
The websites employed the names of casino brands like “Crown” and “New Lisboa” to attract customers.
Concurrently, Chinese social media giant Tencent shut down 50,000 accounts on its WeChat app due to users’ involvement in illegal gambling on World Cup sports.
Guangdong police called the crypto gang as “the most representative of new online gambling cases.”
