The Beijing police, in partnership with the Beijing Branch of the State Administration of Foreign Exchange, recently uncovered numerous cases involving the illegal sale of citizen information using cryptocurrency. The investigation, which spanned 15 provinces and cities in China, revealed transactions exceeding 2 billion yuan ($282 million) and involved more than ten virtual wallets for illegal transactions. Bad actors were found to be using the dark web and virtual currencies to engage in the illicit sale of various private information belonging to Chinese citizens, including ID numbers, mobile phone numbers, and home addresses. These activities were conducted through multiple groups using overseas chat software, with hundreds of millions of citizens’ personal data being traded within these groups.
The use of cryptocurrency for transactions involving the sale of citizen information limited the police’s ability to track down and apprehend the perpetrators, with buyers likely including overseas institutions. This raises concerns about the large-scale outflow of Chinese citizens’ private data to criminals abroad, which could be exploited for fraud targeting ordinary individuals. During the investigation, the police uncovered a suspect named Yan Moumou who was responsible for conducting all transactions related to the sale of citizen information using virtual currencies. The source of Yan’s funds was found to be complex, involving multiple origins and distinguished him from ordinary currency speculators, leading to suspicions of money laundering for underground banks.
As the investigation progressed, it was revealed that Lin Moumou, who assisted Yan with fund exchanges, had been involved in illegal foreign exchange transactions using virtual currencies for an extended period. However, further investigation uncovered that Lin was not the true mastermind behind the criminal operation. There was another higher-level individual orchestrating the scheme, and Lin and the higher-up had no prior association. This highlights the complex and concealed nature of the criminal activities involving the illegal sale of citizen information using cryptocurrency, which requires thorough investigation and collaboration among law enforcement agencies to uncover.
The Beijing police’s efforts to combat illegal activities involving the sale of citizen information using cryptocurrency underscore the need for enhanced security measures and regulations to prevent such criminal acts. The discovery of large-scale transactions exceeding hundreds of millions of dollars using virtual currencies highlights the challenges faced by authorities in tracking and apprehending perpetrators engaging in illicit activities. Moreover, the potential consequences of Chinese citizens’ private data falling into the hands of criminals abroad pose a significant risk of fraud and exploitation targeting ordinary individuals, underscoring the importance of stringent measures to safeguard personal information.
The recent uncovering of cases involving the illegal sale of citizen information using cryptocurrency in China reflects a growing trend of criminal activities leveraging digital assets for illicit purposes. By utilizing the dark web and virtual currencies, bad actors are able to operate in a concealed and diverse manner, making it difficult for authorities to track and apprehend them. The involvement of overseas institutions in transactions related to the sale of citizen information further complicates the investigation and underscores the global nature of cybercrime. As law enforcement agencies continue to enhance their efforts to combat such criminal activities, collaboration and coordination are essential to effectively tackle the challenges posed by the misuse of cryptocurrency for illegal purposes.
