April 19, 2024
"China's Supreme Procuratorate Reveals Details Behind RenrenBit Founder's Prison Sentence
Latest Cryptocurrency News

Founder of RenrenBit Sentenced to Seven Years in Landmark Crypto Case

According to reports, China’s Supreme Procuratorate has disclosed specifics surrounding the seven-year prison term handed to Zhao Dong, the founder of RenrenBit, an over-the-counter (OTC) crypto trading desk involved in crypto and local currency trading.

The Chinese legal prosecution agency revealed on Dec. 27 that Zhao, known as the “OTC King,” was found guilty of running a crypto business and engaging in foreign exchange transactions without proper licensing. This emphasizes the continuous crackdown on crypto, which remains illegal nationwide. The authorities conducted an extensive investigation, delving into intricate financial transactions tied to accounts linked to the alleged offenses. They utilized bank records, communication logs, confessions, and witness statements to construct the case against Zhao and his cohorts.

During the three public hearings, Zhao and his associates argued that their actions didn’t constitute foreign exchange trading but were digital currency transactions, not violating any laws. However, the prosecution presented chat records indicating Zhao and his group’s foreign exchange activities. Multiple recipients involved confirmed that the funds Zhao received were payments from overseas.

The report quoted: “All defendants admitted that Zhao and others in Dubai collected dirhams in cash, converted them to RMB for the other party’s account, purchased Tether using dirhams, and illicitly enabled the domestic group to sell it back for RMB.” Ultimately, the court ruled, sentencing Zhao to seven years in prison and imposing a fine of 2.3 million Chinese yuan ($325,000).

Image by freepik

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