China sentences five in $29M crypto forex case

One defendant surnamed Gao worked as the company's domestic client manager. Gao processed more than 170 million yuan ($25 million) in illegal foreign exchange transactions before leaving and starting a separate currency conversion business, prosecutors said.

China limits individuals to the equivalent of $50,000 per year in foreign currency purchases or transfers abroad. That cap has made underground transfer networks a long-running target for regulators.

The State Administration of Foreign Exchange said it investigated more than 400 foreign exchange-related illegal cases in the first half of 2025 and worked with law enforcement to penalize more than 180 underground banking cases in the same period.

The Shanghai ruling adds another court case to a broader enforcement push. The People's Bank of China has said criminals increasingly use virtual currencies and new technologies to hide money flows. Regulators have flagged stablecoins such as USDT as a channel for yuan conversion into foreign currencies.

The case shows prosecutors are focusing on electronic records, wallet activity and agent networks when building crypto-linked foreign exchange cases. For crypto businesses and OTC brokers that deal with clients in mainland China, the ruling reinforces that local authorities continue to separate Hong Kong's regulated digital asset market from mainland rules, where trading and crypto-based financial activity remain tightly restricted.