Criminals in China seemed to utilize cryptocurrencies to transfer funds from illegal and unsanctioned activities.
CHAINDIGG, a popular data service company in China, broke down the crimes in 2021. The company reported that 67.82% of cases were crypto crimes in this report. These crypto crimes amounted to almost 90 million, according to the firm.
The company also reported that most of the crypto crimes originated from stablecoins. One of the most used stablecoins was the USDT, amounting to at least 80% illegal activity.
This report also involved crimes using Ripple XRP and over 45,000 investors. This report found an illegal pyramid scheme transacting mostly from Ripple and other cryptocurrencies like TRON (TRX) and Ether (ETH).
These worrying numbers explained China’s decision to ban cryptocurrencies from their country. According to China, banning cryptocurrencies is for the environmental and logistical interest of the country.
The report also reported a worrying 223 billion Yuan leaving China into US crypto exchanges, mostly in Bitcoin and other cryptocurrencies.
Moreover, China is also resulting in heavier sanctions for citizens trading cryptocurrencies, warning them that they would have no government protection if they did so.
On Ripple’s end, the company continues to create new algorithms and protocols to avoid transacting illegal activities and those that mask money laundering and pyramid schemes.