China discloses details behind ‘OTC King’ Zhao Dong’s 7-year prison sentence
China’s Supreme Procuratorate has reportedly revealed the details behind the seven-year prison sentence given to Zhao Dong, the founder of over-the-counter (OTC) crypto trading desk RenrenBit, which facilitated crypto and local currency trading.
On Dec. 27, the Chinese legal prosecution agency revealed that Zhao, also dubbed the “OTC King,” was convicted of operating a crypto business and participating in foreign exchange transactions without a license. The move highlights an ongoing crackdown on crypto, which is still illegal in the country.
China's Supreme Procuratorate Unveils Chinese Crypto “OTC King” Zhao Dong Details
— Wu Blockchain (@WuBlockchain) December 28, 2023
He was eventually sentenced to 7 years in prison for engaging in the exchange business of legal currency and cryptocurrency.
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The authorities reportedly unveiled an intricate investigation, unraveling the complex financial transactions, focused on accounts associated with the alleged crimes. The authorities used bank records, communication logs, confessions and witness statements to build a case against Zhao and his associates.
The court held three public hearings for the case, where Zhao and his associates argued that their actions did not constitute foreign exchange trading. They said their actions were digital currency transactions and did not constitute illegal business operations. However, the prosecutor presented evidence related to foreign exchange in Zhao and his group’s chat records.
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Several related recipients confirmed that the funds that Zhao received were payments from foreigners. The report wrote:
“All defendants admitted that Zhao and others in Dubai collected dirhams in cash, paid RMB to the other party’s designated account, bought Tether with dirhams, and let the domestic gang illegally sell it back for RMB.”
In the end, a court issued a verdict, sentencing Zhao to seven years in prison and imposing a fine of 2.3 million Chinese yuan ($325,000).
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