There has been an arrest of a live streamer by Shanghai police who had been tipped off by a live streamer about an alleged money laundering case involving 100 million CNY (14.2 million USD), according to a report from The Legal Daily released on May 17.
In a report published on May 17, the Shanghai municipal police uncovered the first money laundering case in China, involving CNY100 million (USD14.2 million), by offering tips to live streamers in a case that involved live streaming. Police discovered a gang suspected of diverting illegally raised funds to livestreamers while investigating a fraud case in June and arrested 21 of them.
By using hard cash, the offenders were able to buy virtual coins, which, as appreciation, were then given to the hosts of live sales as a token of gratitude by the offenders. After donations were made, they were divided among platforms, livestreamers, and agencies that worked with them.
An investigation found that, between June 2019 and July 2020, one of these live sales hosts, surnamed Li, solicited tips from suspected fraudsters and received income from his platform and commissions from money launderers.
According to police, Li and his colleagues accepted the money during live streaming, knowing that the fund proceeds fundraising fraud, and laundered the money for the suspects, knowing that the funds came from a fundraising fraud. Li has also received tips from several other suspects about phone scams and money laundering cases from internet gambling after October 2020.
A police report indicates that 4 suspects have been arrested on suspicion of money laundering and that 17 additional suspects have been subjected to a criminal investigation for the alleged theft and concealment of illegally obtained funds. As of now, the cases are still being investigated.
Suggested Read:
MONEY LAUNDERING VIA TRADE HAS DRASTICALLY FALLEN, SAYS ASSOCIATION OF BANKERS BANGLADESH
