A Shanghai court sentenced five Chinese individuals to prison terms ranging from 2.5 years to six years for facilitating more than 200 million yuan ($29.4 million) in illegal cross-border foreign exchange transactions using cryptocurrencies over a three-year period, according to a post published Monday by the Shanghai Jingan District People's Procuratorate. The authorities arrested nine individuals in total, with the five defendants also receiving fines between 300,000 yuan ($44,150) and 1.5 million yuan ($220,780). The State Administration of Foreign Exchange (SAFE) discovered the scheme in July 2024 after identifying unusual transactions tied to a company that helped domestic clients illegally transfer funds abroad using crypto. China enforces strict foreign exchange controls, capping annual yuan conversions or remittances at the equivalent of $50,000 per citizen.
Shanghai Court Sentences Five Defendants to Prison and Fines
The Shanghai Jingan District People's Procuratorate announced the sentencing in a post published Monday. Five defendants received prison terms ranging from 2.5 years to six years. The court also imposed fines between 300,000 yuan ($44,150) and 1.5 million yuan ($220,780) on the convicted individuals. Authorities arrested nine individuals in connection with the case.
SAFE Discovers Scheme in July 2024 Targeting High-Net-Worth Clients
In July 2024, SAFE discovered unusual transactions tied to a company that facilitated illegal cross-border fund transfers using cryptocurrencies. The company moved more than 200 million yuan ($29.4 million) over three years. Prosecutors stated that the group targeted high-net-worth clients seeking to purchase overseas property, emigrate, or study abroad. The group expanded its illegal cross-border transaction services through a network of regular agents.
Prosecutors noted that the group leveraged the anonymity of onchain transactions to conceal fund flows, making evidence collection more difficult for authorities. "In cross-border cases involving crypto assets like this, electronic evidence is central to securing a conviction and is also the easiest to lose," prosecutors wrote in the post.
Individual Surnamed Gao Processed Over 170 Million Yuan in Transactions
One individual surnamed Gao served as the company's domestic client manager and helped process over 170 million yuan ($25 million) in illicit foreign exchange transactions, according to prosecutors. Gao later left the company and ran her own currency conversion business.
China's Foreign Exchange Enforcement Statistics for H1 2025
China has long enforced strict foreign exchange controls, capping the amount of yuan citizens can convert or remit at the equivalent of $50,000 per year. In the first half of 2025, SAFE stated it investigated more than 400 foreign exchange-related illegal cases and cooperated with law enforcement agencies to penalize more than 180 underground banking cases.
FAQ
What did the Shanghai court sentence five individuals for?
The Shanghai court sentenced five Chinese individuals to prison terms ranging from 2.5 years to six years for facilitating more than 200 million yuan ($29.4 million) in illegal cross-border foreign exchange transactions using cryptocurrencies over a three-year period, according to the Shanghai Jingan District People's Procuratorate.
When did SAFE discover the illegal crypto forex scheme?
The State Administration of Foreign Exchange (SAFE) discovered the scheme in July 2024 after identifying unusual transactions tied to a company that helped domestic clients illegally transfer funds abroad using crypto.
What is China's annual foreign exchange limit for citizens?
China enforces strict foreign exchange controls, capping the amount of yuan citizens can convert or remit at the equivalent of $50,000 per year.
