Prosecutors in Hunan, China, have dismantled a new money laundering chain that used the sale of Moutai liquor as a cover and virtual currency as a channel.

On March 20, a first-instance verdict was handed down in a case prosecuted by the Yuetang District People's Procuratorate of Xiangtan City, Hunan Province, involving the concealment and cover-up of criminal proceeds. A new money laundering chain, using Moutai liquor transactions as a cover and virtual currency as a channel, was completely dismantled. The case involved over 6.84 million yuan, and all eight defendants were sentenced. The gang had a clear division of labor and was highly secretive. Chen used encrypted overseas communication software to connect with upstream partners, receiving proceeds from telecommunications fraud and contacting "U-merchants" to complete the exchange and transfer of virtual currency; Xie was responsible for providing tools for the crime and keeping track of fund details; Huang used the purchase and sale of Moutai liquor as a cover, using real transactions to conceal the transfer of illicit funds; the other members assisted in fund settlement and information transmission. The gang used fake Moutai liquor transactions as a "laundering" step, disguising overseas fraud proceeds as legitimate business income, converting them into virtual currency and returning them to upstream partners. For each "laundered" transaction, they extracted an illegal 8% commission. In December 2023, a victim reported the crime, bringing to light this hidden black market supply chain beneath the guise of luxury liquor trading. Following the case, the Yuetang District People's Procuratorate intervened early in the investigation, guiding the public security organs to analyze nearly 20 million yuan in financial transactions and massive amounts of electronic data, achieving a full-chain crackdown and comprehensive evidence collection. The court ultimately sentenced Xie and six other principal and accomplice defendants to prison terms ranging from two to six years for concealing and covering up the proceeds of crime; Liang, whose offenses were less serious, was sentenced to one year in prison with a one-year suspended sentence. (Huasheng Online)