[Shanghai Police Uncover Illegal Cross-Border Virtual Currency Operation Platform, Involving 200 Million Yuan] BlockBeats News, August 28: The Hongkou Public Security Bureau in Shanghai, China, recently cracked a case involving the use of virtual currency for illegal cross-border settlements and foreign exchange transactions. Nine suspects were arrested, with the case involving over 200 million yuan. Since early 2024, suspects including Li have established a technology company to seek illegal profits. They built two platforms online, namely 'Cross-Border Fund Exchange' and 'Virtual Credit Card Issuance and Settlement,' to attract customers both online and offline. They conducted illegal virtual currency and cross-border fund exchange and settlement operations, profiting through transaction fees, service charges, card issuance fees, withdrawal fees, and other means. Investigators noted, 'What makes this case unique is that the criminals developed two apps and openly solicited customers on such a large scale, which is unprecedented. The platforms themselves constitute a closed-loop illegal financial service system, with all transactions settled internally. This crime model is more scalable, has a longer chain, and is more deceptive.' Reports indicate that on the 'Cross-Border Fund Exchange' platform, the criminal group collected virtual currency from customers overseas, converted it into foreign currency to form a 'fund pool,' and then used fabricated contracts to conduct cross-border settlements, enabling the exchange and transfer of virtual currency into RMB. On the 'Virtual Credit Card Issuance and Settlement' platform, the criminal group 'collaborated' with multiple overseas private banks to issue virtual credit cards to customers. Customers could use these cards for consumption, but repayments had to be settled in virtual currency. The group then exchanged the virtual currency for foreign currency overseas and relied on fake cross-border settlements to clear transactions with overseas card merchants. [Original Link]