Xiao Yang, operating from Sunwu County, utilized WeChat to connect buyers and sellers of USDT, offering slightly higher rates than those found on the OKX exchange. As a middleman, he processed transactions using his personal Tether (TP) wallet, pocketing profits from each deal. Over a three-month period, Xiao handled over 10,000 transactions linked to identical accounts, moving more than 30 million USDT – approximately $16.5 million – generating illegal profits estimated at $60,000. 8 Further investigations uncovered connections between Xiao’s services and multiple telecommunications fraud cases, including receiving over 59,000 yuan in fraudulent payments and assisting in transferring an additional 116,000 yuan, leading to cumulative losses exceeding $4.1 million. Authorities then found that Xiao concealed over $170,000 worth of criminal proceeds. 2 The Sunwu County Court concluded, even though Xiao’s role was less significant than larger fraud operations, he was guilty of concealing and disguising the source of illicit funds. His willingness to confess, return stolen gains, and express remorse helped mitigate his sentence, but he still received legal penalties and a fine. This case showcases China’s crackdown on virtual currency activities following its 2021 ban on crypto-related businesses. Since then, Chinese courts have been increasingly active in prosecuting offenses related to digital assets.