China has imprisoned two men for using the Tether stablecoin (USDT) to circumvent foreign exchange controls. They received five year sentences after processing RMB 30 million ($4.1m) in transactions.
One of the traders met a Nigerian online who complained about the foreign exchange costs of converting naira to renminbi. So Lin, the Chinese trader, came up with a plan for the Nigerian, ‘Prince’, to buy Tether on a local crypto exchange and transfer it to Lin. He then sold the Tether to domestic currency dealers, deposited the renminbi into a local bank and transferred it to an account belonging to Prince. After making 300 yuan on the first transaction, Lin went into business with a friend, Yan.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
