A Shanghai court has handed down prison sentences ranging from five to six years to five individuals involved in illegal cross-border cryptocurrency transactions totaling more than $29.4 million. The case centered on unauthorized foreign exchange operations that used digital assets as a bridge to move money across borders, skirting China’s notoriously tight capital controls.
What happened and why it matters
Beijing banned commercial cryptocurrency activities years ago, including trading, mining, and any transfers that function as unauthorized foreign exchange. Each of the five received sentences between five and six years. No appeals or additional charges were detailed in initial reporting.
The identities of the defendants, the specific cryptocurrencies used, and the blockchain protocols involved have not been publicly disclosed.
A 2025 Beijing ruling addressed $166 million in similar money laundering schemes using USDT stablecoins, making the Shanghai case look almost modest by comparison.
