Hong Kong Crypto Exchange Founder Taken Amid China’s Crackdown on Fraudulent Bank Accounts

Hong Kong-based crypto exchange CEO Global said Saturday one of its founders has been taken away by the authorities and it has no idea when he may return.

“Affected by the ongoing national crackdown on fraudulent SIM cards and bank accounts, the bank account of one of our core founders has received illicit money from international fraudsters and scammers,” the company said in a statement. “The founder has been taken away for 15 days for the investigation.”

The founder holds the private keys to most of the platform’s cold wallets. Since the exchange currently can not process all the withdrawals through its hot wallets, it said it has decided to suspend all withdrawals.

In the meantime, the platform will close all its over-the-counter (OTC) trading services because of the risks related to uncertainties surrounding China’s regulatory policies.

The State Council, China’s cabinet, announced a national crackdown on fraudulent bank accounts and SIM cards in October. “Fraudulent SIM cards and bank accounts are among the root causes that have enabled many phone and cyber scams,” according to the announcement.

People who want to avoid revealing their identity when opening a bank account or SIM card, many of whom are scammers, would buy existing SIM cards and bank accounts registered under others’ names.

Due to high demand for these fraudulent accounts, an industry has developed to create and sell these accounts, some of which are obtained via identity theft. Within two weeks of the State Council’s announcement, the Chinese police have arrested more than 4,600 people and confiscated about 65,000 bank cards that are linked to fraudulent banking accounts, according to a report by state media outlet CCTV.

More than 15,000 people involved in the crimes are barred from opening a new bank account in five years, according to the report.

Colin Wu, a Chinese crypto reporter, recently said some Chinese crypto miners might have had difficulties in exchanging their mined bitcoin (BTC, -0.51%) or ETH (ETH, -0.61%) for the Chinese fiat currency to pay their electricity bills using a bank card due to the crackdown.

Source: coindesk.com

Comments

Cryptocurrencies Adding to the Safety and Security in the UK Gambling Industry

These are exciting times for the UK gambling industry. The impact of internet technology is now being felt with online gambling now controlling the industry. The adoption of cutting-edge technology is reasonable for the boom in the industry. From live casinos, mobile apps to artificial intelligence, incredible trends continue shaping the gambling industry. However, it is the rise of cryptocurrency casinos that seeks to redefine UK gambling. Many operators now include crypto coins such as bitcoin, Ethereum and Litecoin as part of their banking methods. Others offer exclusive bitcoin payments and promotions based on digital tokens. This revolutionary trend has a huge impact due to enhanced safety and security on these platforms. Players looking for peace of mind when playing online now opt to use cryptocurrencies. This post looks at how cryptos guarantee the safety and security of players at online casinos. How Cryptocurrency Gambling Works There’s a lot of talk ab...

Coinbase to Require Recipient Information for Crypto Transfers From Users in Canada, Singapore and Japan

Customers in those countries who send crypto outside their Coinbase accounts must provide recipients’ names, addresses and in some cases, additional information, as of early April. Cryptocurrency exchange Coinbase Global (COIN) will soon require its customers in Canada, Japan and Singapore who send cryptocurrency to another financial institution or exchange to provide the name, address and in the case of Japan, the destination wallet of the recipient. Coinbase has been sending notices to its customers in those countries that the changes will take effect in early April in order to comply with local travel rules in those places. Coinbase didn't immediately respond to requests for additional comment on the moves, but confirmed that they were taking place. The move does not seem to be going over well with Coinbase customers in those countries, who value the anonymity of transactions using cryptocurrency. According to a FAQ provided by Coinbase , for Canadian users, ...

Farm GRASS earn MONEY

Use your Unused Internet Bandwidth to make $$$ In today’s interconnected world, the concept of passive income has taken on new dimensions, offering innovative ways for individuals to monetize underutilized assets. One such groundbreaking avenue involves earning money by selling your unused internet connection. By participating in decentralized networks like Grass, individuals have the opportunity to turn their dormant bandwidth into a valuable asset, contributing to a fairer and more equitable digital landscape while generating income. Grass is a decentralized network sharing application designed to offer an alternative to existing centralized networks. It allows users to sell their unused bandwidth directly, without the need for exploitative middlemen. The platform operates by enabling users to download a web extension that runs in the background, assisting others in accessing public web data in exchange for payment using the protocol’s native token. How ...

Crypto Ethone

Search This Blog