China Busts a USDT Gambling Ring Facilitating Payments Abroad
China Hunts Down an Illegal USDT Gambling Operation
China continues with its crackdown on unauthorized gambling operations. In the latest bust, the Public Security Bureau in Huizhou City in Guangdong province arrested 76 suspects involved in a payment fraud scheme which facilitated deposits and withdrawals from online gambling websites based outside China.
The payment system was described as a four-party payment processing operation, Chinese media said on Thursday. The operation also targeted other activities that are considered fraudulent under Chinese law.
Suspects reportedly used Tether (USDT) to process payments and provide players with an opportunity to participate in online gambling. According to authorities, the service was in operation for 15 months before it was snuffed out in June.
To function, the platform needed rank-and-file participants to create “runner” accounts. Some 3,000 people have been recruited for the purpose. Runners were asked to deposit sums of money on the platform and when they wanted to make deposits or withdrawals from a gambling website, they would use their account balances on the platform to purchase products that never arrived.