Black money flows into unwitting users

Under the background of increasingly tight regulation in the traditional market, the black market is also gradually transferred to the emerging industry in the crypto market. Funds obtained illegally, such as "pig killing dish", spinach funds and telecom fraud, are all the reasons why OTC cards are prone to freeze. The frozen card tide in June is caused by the inflow of high-risk assets involved in the foreign exchange fund. Foreign exchange is just a sheepskin for fraud.

The black money involved in this case was about 300 million yuan, and several transactions were made with a team of Huobi OTC in order to achieve the purpose of "white washing" the black money into digital currency. After Yuan got the black money, he traded with a number of OTC merchants on the platform. Among the funds traced by the police, the spread of black money affected more than 4,000 bank cards, causing the merchants and users' funds to be frozen. Many OTC merchants have made transactions without their knowledge. Once the card is frozen, people will be more worried and can only laugh at it.

Huobi may have become a black money gathering place
Huobi is a world famous exchange, its OTC depth is good, so it is a good choice for money laundering. At the same time, Huobi also has "mutual benefit" with money launderers, the other side laundered money, Huobi sits and watches the trading volume rise, without cost and profit.

Perhaps because of this, Huobi itself has been lax in its scrutiny. Huobi is very "water" for the audit of merchants' settlement. Basically, if you apply, you can pass. At the same time, Huobi will also provide convenience for merchants. For example, a merchant named "UK Small x Class" in the frozen card tide committed a second crime with the help of Huobi after his account was frozen for the first time.

We all know that the iceberg above the sea is only the tip of the iceberg. Although more than 4,000 cards have been frozen and police have arrested more than 10 Huobi OTC merchants, there is still a lot of black money in invisible places, and it is not the first time that Huobi OTC transactions involve money laundering.

In March, the Justice Department filed charges against two domestic OTC merchants for money laundering and unlicensed money transfers. Between December 17 and April 19, the two men were involved in providing more than $100 million in money laundering services. The hackers transferred the stolen illicit funds into exchanges and then transferred them to Huoyuan and Coincola using Peel Chain to launder money.