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HomeLaw & PoliticsUSDT is used in 80 percent of China's crypto-fraud schemes

USDT is used in 80 percent of China’s crypto-fraud schemes

Numerous cryptocurrencies have been identified as the primary enablers of cryptocurrency crime in China.

According to statistics from a huge number of genuine instances involving crypto fraud and money laundering, Ethereum, USDT, and TRON would be the most commonly utilised cryptocurrencies in 2021. The research was issued by CHAINDIGG, a Chinese blockchain big data service firm, and included a breakdown of the key categories of instances as well as the quantity of cryptocurrency utilised in 2021.

The most prevalent sort of crypto crime was crypto pyramid schemes, which accounted for 67.82 percent of all reported incidents. According to estimates, the average amount of cryptocurrency used in money laundering is roughly 90 million.

In contrast, digital currency online gambling had the largest crypto expenditure while ranking fourth in frequency of occurrence. Over 2.14 billion yuan in cryptocurrency was spent on gaming in China last year.

According to the research, stablecoins were the primary enabler of illegal cryptocurrency use in China. Among them, USDT accounted for almost 80% of unlawful crypto expenditures. The news follows the recent crackdown by Chinese authorities on a pyramid scam employing Ripple’s XRP currency and over 45,000 investors.

CHAINDIGG’s research also underlined the impact that China’s crypto prohibition has had on the country’s engagement in crypto.

China has claimed fraud and money laundering issues, as well as environmental concerns, as the primary grounds for its cryptocurrency prohibition. However, with such enormous outflows of cash, the Chinese economy would almost certainly experience the effects of capital flight.

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