According to TechFlow, on December 20, 2025, the Shenyang Public Security Bureau in Liaoning Province successfully investigated the case of 'Tong's illegal forex trading.' From 2017, Tong and others engaged in illegal forex trading in the U.S., and between January 2020 and June 2021, they conducted over RMB 16 million in illegal forex transactions through 'wash trading.' Tong admitted to selling Bitcoin and USDT to a Mexican businessman, JC, in exchange for USD cash. The main clients were students, merchants, and gamblers. In September 2025, the Huanggu District People's Court sentenced Tong and Chen to 1 year and 7 months, and 1 year and 4 months in prison, respectively, and imposed fines. Authorities warned the public to use legal channels like banks for forex transactions and avoid lending personal accounts to others.
Shenyang Police Crack Down on Illegal Forex Trading Involving Bitcoin and USDT
KuCoinFlashShare
Summary
Shenyang police cracked down on an illegal forex trading ring involving Bitcoin and USDT, with Tong and others conducting over RMB 16 million in wash trading from 2020 to 2021. Tong admitted to selling crypto to a Mexican buyer for USD cash, targeting students and gamblers. In September 2025, the Huanggu District Court sentenced Tong and Chen to 1 year and 7 months, and 1 year and 4 months, respectively. Authorities urged the public to avoid risk-on assets through unregulated channels and to use legal forex methods. The case highlights the need for better liquidity and crypto markets oversight.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.