Five Sentenced for Using USDT in Cross-Border Money Transfers
A court in Beijing has sentenced five people to prison for using the stablecoin USDT to transfer money illegally. The group disguised these transfers as cryptocurrency trading to bypass China’s foreign exchange controls.
The case is one of 13 key financial crime rulings released by the Beijing Municipal People’s Procuratorate for 2024–2025. These rulings cover banking, insurance, securities, credit, and foreign exchange management.
Details of the Money Transfer Scheme
The group operated from January to August 2023. They used personal bank cards to receive large sums of renminbi (RMB) from domestic clients needing to move money abroad. The money was converted into USDT on various crypto exchanges and sent to wallets overseas. This turned USDT into an informal settlement method.
Two defendants, both surnamed Lin, organized the scheme. The others, surnamed Xia, Bao, and Chen, managed transactions and accounts. The group handled more than 1.18 billion yuan (about USD 166 million). Each member was involved in transactions worth at least 149 million yuan.
The scheme operated as an unlicensed cross-border transfer service. The group profited from the price difference between RMB domestically and USDT offshore.
Verdict and Investigation Techniques
The Haidian District People’s Court convicted the group of illegal business operations. They received prison sentences between two and four years and fines. All five defendants pleaded guilty and did not appeal their sentences.
Prosecutors used advanced digital forensics to trace the money flow. They tracked transfers from Chinese bank accounts to USDT conversion and then onward to overseas wallets. This full transfer path helped confirm the scheme’s scale and supported precise sentencing.
Authorities plan to use this case as a benchmark for future financial crime cases involving cryptocurrencies and foreign platforms.
