pull down to refresh

How a Chinese American Gangster Transformed Money Laundering for Drug Cartelswww.propublica.org/article/china-cartels-xizhi-li-money-laundering
842 sats \ 8 comments \ @satup 12 Oct 2022 bitcoin
write
preview
related posts
38 sats \ 1 reply \ @2big2fail 12 Oct 2022
this is very true...without being able to given details that reveal my employer this is indeed how it works..
  1. drug cartel has $1mil in USD
  2. cartel meets with chinese national and chinese national takes USD and sends equivalent Yuan from their chinese bank to a chinese business' account
  3. Chinese launderers uses onshore yuan to "buy" 1mil in goods within china but send goods to mexico
  4. Cartel receives goods and sells 1mil in goods and now has clean money
reply
16 sats \ 0 replies \ @cryptocoin 12 Oct 2022
cartel meets with chinese national and chinese national takes USD and sends equivalent Yuan from their chinese bank to a chinese business' account
And then they use that cash to buy a house. From the article:
"In the United States, there is little if any customer due diligence by real estate agents.”
Indirectly then, the capital controls in China are enriching the drug cartel leaders as they figured out this alternate method that essentially moves the proceeds of their drug sales through China.
And to go further, the reason the drug cartels are profiting in the first place is because with these drugs being illegal they receive a high margin selling them due to lack of competitors in the space.
So the bottom line is that regulations on certain drugs in the U.S. led to drug cartels flush with cash but with the situation that the cash is located where it was hard to move. And then capital controls (regulations) in China led to a solution that ultimately let those drug cartels have access to that cash locally.
reply
38 sats \ 1 reply \ @siggy47 12 Oct 2022
This article is practically book length! Very interesting and entertaining, but who knows how accurate it is. In today's world I question everything I read. I wonder if this is US propaganda against China. Anyway, it's just another example of how ridiculous the "bitcoin is for criminals " fud is when fiat, including cash and bank deposits, can so easily be used for criminal purposes.
reply
33 sats \ 0 replies \ @cryptocoin 12 Oct 2022
It was a very thorough, well written and very interesting read.
At the end though, I had this though ...
This drug cartel kingpin gets a 15-year sentence, and Ross gets double life with no chance of parole, for operating a website. Makes sense.
reply
16 sats \ 3 replies \ @cryptocoin 12 Oct 2022
Part Two:
Oh man ... this Lui was a total pyramid ponzi scammer / shitcoiner, the equivalent of a Chinese Bitconnet! Hey hey hey!!!!
But in 2014, Liu embarked on a caper in China. He touted a cryptocurrency with an ex-convict, Du Ling, known as the “queen of underground banking,” according to interviews, media reports and Chinese court documents.
It was all a fraud, authorities said. Chinese courts convicted the banking queen and others on charges of swindling more than 34,000 investors from whom they raised over $200 million.
The Globetrotting Con Man and Suspected Spy Who Met With President Trump https://www.propublica.org/article/liu-tao-trump-meeting-china-investigation
reply
0 sats \ 1 reply \ @cryptocoin 12 Oct 2022
An article from 2020 on CoinDesk:
US Charges 6 With Laundering Mexican Drug Cartel Cash Using Crypto and Casinos https://www.coindesk.com/markets/2020/10/16/us-charges-6-with-laundering-mexican-drug-cartel-cash-using-crypto-and-casinos/
reply
6 sats \ 0 replies \ @cryptocoin 12 Oct 2022
Doh, this Liu (Blue Ocean Capital), was a serial scammer / shitcoiner (but I repeat myself)!!!
The filing alleges that the plaintiff Lijun Sun transferred $2 million to New-York based investment group Blue Ocean Capital Group, Inc. to purchase MCash token
Crypto Firm Accused of Fraud, Duping Investor Into Buying $2 Million in Tokens https://www.yahoo.com/entertainment/crypto-firm-accused-fraud-duping-020700336.html
reply
0 sats \ 0 replies \ @cryptocoin 12 Oct 2022
My typo, ... *Liu not Lui
reply