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Chinese police seize 1.3m virtual coins in online casino bust
Police in Jianhu have successfully clamped down on the country’s first ever case which involves cryptocurrencies, as “DAPP Biggame” casino was taken over by the police force who ended up snatching more than 1.3 million units and arresting 25 suspects involved. The coins are estimated to be valued at around RMB 26 million.
The Jianhu police have opened an investigation, and back in November of last year, they decided to open the case for advanced analysis. The case involves resources from the criminal investigation, technical investigation and network security departments.
After analysing data from 27m items, the police force was able to identify the casino contract addresses which were being utilized for payout, lottery and betting. Using this information, they were able to arrest the masterminds behind the case, including Liu, Xie and Hu, among others.
After further interrogation, the police was able to find out all the details of the crime, including how they managed to pull it off. The masterminds confessed to launching the casino and further detailed just how they withdrew the stolen crypto, which is now estimated to be worth over 1.3 million in BTC and EOS. The police also identified Hu’s two properties and car, along with a property registered under Liu’s name.
Hu was in charge of an operation, the Guangzhou Consensus Network Technology Company, which was in need of a capital. In order to acquire that sum, he teamed up with Xie and Liu to set up an online casino which utilizes a blockchain technology. The team used crypto to make this illegal platform, on which transaction volume exceeded 420 million in cryptocurrencies, which are now worth upwards of RMB 8 billion.
Police was also able to identify exchanges in Shenzen and Xiamen which were providing the three with services in exchange for a certain percentage.
Jianhu police went through with more raids during the month of January on gangs which were supposedly offering conditions for illegal betting and gambling. There were a total of 11 suspects arrested, and there were 73,000 people gambling on the platform with 8 billion yuan of capital. 60 million out of this amount was considered to be illegal income.