Gate News Report, March 20 — Recently, the People’s Procuratorate of Yuetang District, Xiangtan City, Hunan Province,依法 filed a criminal prosecution for a case of concealing and disguising criminal proceeds, and the first trial has been concluded. A new type of money laundering chain using Maotai liquor transactions as a cover and virtual currency as a channel has been thoroughly dismantled, involving over 6.84 million yuan, with all 8 defendants sentenced.
The gang was well-organized and highly covert. Chen used overseas encrypted communication software to connect with upstream sources, receiving telecom scam proceeds, and coordinated with “U Merchant” to complete virtual currency exchanges and transfers; Xie was responsible for providing tools for the crime and tracking fund details; Huang used Maotai liquor buying and selling as a pretext, disguising the transfer of illicit funds with real transactions; the other members assisted with fund settlement and information transmission.
This gang used fake Maotai liquor transactions as a “whitewashing” step, disguising overseas scam proceeds as legitimate business income, converting them into virtual currency and returning them to upstream sources. Each “whitewashing” transaction involved an illegal commission of 8%. In December 2023, following a victim’s report, this hidden black and gray industry chain behind high-end liquor transactions was exposed.
After the case was discovered, the Yuetang District People’s Procuratorate intervened early in the investigation, guiding the police to review nearly 20 million yuan in fund flows and a vast amount of electronic data, achieving full-chain crackdown and comprehensive evidence collection. The court ultimately sentenced seven main and subordinate offenders, including Xie, to 2 to 6 years in prison for concealing and disguising criminal proceeds; Liang, with lighter circumstances, was sentenced to 1 year in prison with a 1-year probation.
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