Chinese Authorities Crack Down on Gambling Sites Using Tether Stablecoin

Chinese authorities have arrested 77 individuals and shuttered gambling sites using the dollar-pegged tether (USDT) cryptocurrency.

AccessTimeIconOct 23, 2020 at 8:34 a.m. UTC
Updated Sep 14, 2021 at 10:22 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A local branch of the People's Bank of China (PBoC), in conjunction with other Chinese authorities, has conducted mass arrests and shut down online gambling sites for activities involving the tether (USDT) stablecoin.

  • Announced Thursday in a statement by the PBoC office in Huizhou city, 77 suspects have been arrested and three gambling sites have been shuttered.
  • The announcement came via the central bank's official WeChat account and was confirmed to CoinDesk by a source who requested anonymity.
  • The arrests were made over alleged money laundering in which "whitewashing" was used to hide funds obtained through illegal online gambling activity, including through USDT, a cryptocurrency linked to the value of the U.S. dollar on a 1:1 basis.
  • The total amount involved in the alleged laundering is said to be around 120 million yuan ($17.95 million)
  • It is "illegal to open casinos and participate in gambling online," the PBoC said. "Don't be curious and lucky. Any 'disguise' can't escape high-pressure supervision."
  • In July, crypto over-the-counter (OTC) traders were detained in order to assist with state investigation efforts involving illegal economic activity, however, at the time, no arrests were made.
  • The gambling arrests come as the PBoC is closing on the launch of its "digital yuan" central bank digital currency.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.