Reporters learned from the Public Security Bureau of Panshi City, Jilin Province on the 10th that the locality successfully cracked a case of illegal operation of an underground bank using virtual currency, involving approximately RMB 2.14 billion yuan, and six suspects who committed crimes in both China and South Korea were apprehended.

　　Police stated that the individuals involved in the case exploited the characteristics of virtual currency—anonymous transactions, decentralization, and lack of national borders—to illegally conduct exchange business between RMB and Korean won.

　　It is understood that the Economic Investigation Detachment of the Panshi Public Security Bureau discovered important leads during its work: a Jilin resident surnamed Jin, together with a person surnamed Shen, conducted Korean won exchange business in South Korea and within China, and in the process defrauded others of their money before fleeing back to China.

　　Acting on the leads, police found that the bank accounts under the two individuals' names showed enormous transaction volumes, with funds flowing in and out frequently every day in both round and odd amounts, numerous transaction clients, and capital flows consistent with the characteristics of an illegal underground bank operation.

　　The police task force conducted comprehensive analysis and assessment of the bank fund flows and social relationships of Jin and Shen, expanded the organizational structure and transaction tiers, and gradually gained a full picture of the gang's organizational structure and the whereabouts of the funds. Subsequently, police successfully apprehended the suspects Jin, Shen, and others, and lawfully seized a large number of bank cards and tools used in the crimes.

Jilin Panshi police cracked an underground bank case; criminal suspects identify the tools used in the crimes. (File photo) Photo by Li Qiang

　　Police ascertained that the criminal gang in this case used domestic accounts to receive and transfer funds, engaged in OTC buying and selling of virtual currency, and settled in Korean won, among other methods, to illegally conduct foreign exchange business, helping groups such as Korean purchasing agents, cross-border e-commerce operators, and import-export trading companies to realize exchange between RMB and Korean won.

　　Through extensive investigation and evidence collection, police successively apprehended Chen, Luo, He, Zheng, and others.