👨‍⚖️ China🇨🇳: Five Sifang payment aggregator operators sentenced to 3–6 years in prison for facilitating gambling- and cryptocurrency-related payments

👨‍⚖️ China🇨🇳: Five Sifang payment aggregator operators sentenced to 3–6 years in prison for facilitating gambling- and cryptocurrency-related payments

Five individuals responsible for the Sifang payment aggregator were sentenced in China to between 3 and 6 years in prison for their involvement in activities deemed illegal, including the processing of payments linked to gambling operations and cryptocurrency transactions.

The platform allegedly operated since 2022 without regulatory authorization, offering a solution known as “one code for multiple uses”, which enabled the integration of different payment channels from financial institutions into a single infrastructure for transaction processing.

➡️ According to the investigation, the system reportedly processed approximately USD 436 million in transaction volume during its period of operation.

➡️ The aggregator offered merchants a comprehensive fund management solution, including payment reconciliation and revenue distribution.

➡️ Funds were processed through 105 commercial accounts connected to 10 third-party payment companies, using USDT, bank cards, and third-party bank account credentials.

➡️ To trace cryptocurrency-related transactions, authorities relied on information obtained from Tether wallets and accounts registered on the OKX exchange.

➡️ According to Chinese media reports, one of the platform’s main operators, identified by the surname Ma, was already under investigation for allegedly engaging in illegal business activities. He was ultimately sentenced to 4 years and 6 months in prison and fined the equivalent of USD 443,100.

➡️ Regulatory context: In China, private companies are not authorized to conduct specialized audits of cryptocurrency-related operations, as the use of such assets is considered illegal in the country. As a result, in cases of this nature, the determination of illicit gains is often based largely on evidence collected by authorities during the investigation and on statements provided by the individuals involved.

#news #China #gambling #crypto

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