China Releases Details Behind ‘OTC King’ Zhao Dong’s 7-Year Imprisonment
China's Attorney General has reportedly released the details behind the seven-year jail sentence of Zhao Dong, the founder of an over-the-counter (OTC) crypto trading desk that facilitated crypto and local currency trading.
On December 27th, China's Prosecutor General's Office found Zhao, known as the “OTC King”, guilty of operating a crypto business and engaging in unauthorized foreign exchange transactions. The move reflects an ongoing crackdown on crypto, which is still illegal in the country.
China's Prosecutor General Releases Details of Chinese Crypto “OTC King” Zhao Dong
He was eventually sentenced to 7 years in prison for his involvement in fiat currency and cryptocurrency trading.
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Authorities have reportedly unveiled a complex investigation focused on accounts linked to suspected crimes, investigating complex financial transactions. Authorities used bank records, communication logs, confessions and witness statements to indict Zhao and his associates.
The court held three public hearings on the case, and Zhao and his associates argued that their actions did not amount to foreign exchange trading. They said their actions were digital currency transactions and not illegal business activities. However, the prosecution presented evidence related to the foreign exchange in the records of conversations between Zhao and his team.
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Several related recipients confirmed that the money Zhao received was paid by foreigners. The report says:
“All defendants admitted that Zhao and others collected cash in Dubai dirhams, paid RMB to the other party's designated account, bought Tether in dirhams, and allowed local gangs to illegally sell it in RMB.”
Ultimately, the court sentenced Zhao to seven years in prison and a fine of 2.3 million Chinese yuan ($325,000).
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