Hunan Procuratorate in China Cuts Off New Money Laundering Chain Using Moutai Liquor Trading as Cover and Virtual Currency as Channel

MarsBitNews · 2026-03-20T11:14:22+00:00

The People's Procuratorate of Yuetan District, Xiangtan City, Hunan Province has pronounced a verdict in a novel money laundering case disguised as Moutai liquor transactions, involving a case amount of over 6.84 million yuan, with 8 defendants sentenced. The criminal group laundered telecommunications fraud proceeds through virtual currencies using covert operational methods, and was ultimately traced and subjected to comprehensive chain crackdown.

MarsBitNews

2026-03-20 11:14:22

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Mars Finance News: On March 20, a first-instance verdict was announced for a case of concealing and disguising criminal proceeds, prosecuted by the People’s Procuratorate of Yuetang District, Xiangtan City, Hunan Province, China. A new type of money laundering chain using Maotai liquor transactions as a cover and virtual currency as a channel was thoroughly dismantled. The case involved over 6.84 million yuan, and all eight defendants were sentenced.

The gang had clear roles and operated covertly. Chen used overseas encrypted communication software to connect with upstream sources, receiving telecom scam proceeds, and coordinated with “U Business” to exchange and circulate virtual currency; Xie was responsible for providing tools and tracking fund details; Huang used Maotai liquor buying and selling as a pretext, disguising the transfer of illicit funds with real transactions; the other members assisted with fund settlement and information transfer.

This gang used fake Maotai liquor transactions as a “whitewashing” step, disguising overseas scam proceeds as legitimate business income, converting them into virtual currency and returning them to upstream sources. Each “whitewashing” transaction involved an illegal commission of 8%. In December 2023, following a victim’s report, this hidden black and gray industry chain under the guise of high-end liquor trading was exposed.

After the case was discovered, the Yuetang District People’s Procuratorate intervened early in the investigation, guiding the police to review nearly 20 million yuan in fund flows and a large amount of electronic data, enabling a full-chain crackdown and comprehensive evidence collection. The court ultimately convicted the defendants of concealing and disguising criminal proceeds, sentencing seven main offenders, including Xie, to prison terms ranging from 2 to 6 years; Liang, with lighter circumstances, received a one-year prison sentence with a one-year probation. (Huasheng Online)

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