‘OTC King’ Zhao Guilty of Unauthorized Crypto Operations, Says Chinese Legal Authority
China’s Supreme Procuratorate has reportedly disclosed the details behind the seven-year prison sentence given to the founder of the over-the-counter (OTC) crypto trading desk RenrenBit, Zhao Dong.
In a press release on December 27, the Chinese legal authority revealed that the convictions were related to illegal business operations and unlicensed foreign exchange transactions.
China's Supreme Procuratorate disclosed the details of the team of China's crypto OTC king Zhao Dong. Zhao Dong was sentenced to 7 years for illegal business operations and illegal foreign exchange trading. He is the founder of RenrenBit and a small shareholder of Bitfinex.…
— Wu Blockchain (@WuBlockchain) December 27, 2023
The agency reportedly highlighted that the crackdown on the ‘OTC King’ and his associates was supported by substantial evidence, including bank records, communication logs, confessions, and witness statements.
This was closely followed by three public hearings, during which the defendants argued that their actions were digital currency transactions, not foreign exchange trading.
Despite their claims, the prosecutor presented chat records as evidence, resulting in a verdict that sentenced Dong to seven years in prison and a 2.3 million Chinese yuan ($325,000) fine.
On December 24, local news outlets reported that China’s State Administration of Foreign Exchange had cracked an illicit forex ring operation that leveraged cryptocurrencies to bypass foreign exchange laws.
-Regulatory and Legal-
1. China's State Administration of Foreign Exchange Cracks Down on $2.2 Billion Crypto Exchange Ring: The Chinese State Administration of Foreign Exchange (SAFE) has cracked down on an underground bank that used crypto to offer illegal exchange
