# Money Laundering Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Money Laundering", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

The Captained Billion-Dollar Black Industry Empire, Who Never Forgot His First Pot of Gold Earned from a "Legend" Private Server

Chinese national Chen Zhi, the mastermind behind the massive transnational criminal network known as the "Prince Group," was extradited from Cambodia to China on January 7th. His criminal empire, which operated over 100 entities across more than 30 countries, was involved in money laundering, telecom fraud, and online gambling, generating an estimated daily profit exceeding $30 million. Chen's origins were humble. Born in a Fujian fishing village in 1987, he worked as an internet cafe manager before entering the illicit world of *Legend* (传奇) private servers. He was a member of the "Knight Attack Squad," a group that used DDoS attacks to monopolize the advertising market for these unauthorized game servers, earning his first fortune. He later relocated to Cambodia, where he built the Prince Group. Its operations included real estate and banking, but its core business was crime. U.S. authorities moved to seize 127,271 Bitcoin from Chen, valued at approximately $15 billion, marking the largest such forfeiture in U.S. history. A key part of his gambling operation involved embedding a plugin called "Fat Girl" (胖妞) into *Legend* private servers. This plugin forced players to gamble to progress in the game or convert virtual items into cash, creating a massive online casino that funneled billions through shell companies. Despite attempts to launder his image and investments through seemingly legitimate tech ventures in China, these fronts were shut down by police. Chen's story illustrates a path from exploiting vulnerabilities in early internet gaming to building a vast, destructive criminal empire, ultimately ended by international law enforcement cooperation.

marsbit01/18 13:27

The Captained Billion-Dollar Black Industry Empire, Who Never Forgot His First Pot of Gold Earned from a "Legend" Private Server

marsbit01/18 13:27

CRYPTO Act Proposal: Unlicensed Operations In New York Could Lead To 15 Years In Prison

A new bill called the "CRYPTO Act" has been proposed in New York, aiming to impose stricter regulations on digital asset firms. Introduced by Manhattan District Attorney Alvin Bragg and State Senator Zellnor Myrie, the legislation would criminalize unlicensed cryptocurrency operations, including exchanging, trading, or transporting digital assets. Currently, such activities only face civil penalties. Under the proposed law, unlicensed operations could be classified as a felony, with penalties ranging from a misdemeanor to up to 15 years in prison for transactions exceeding $1 million annually. The bill aims to align state regulations with federal standards and combat money laundering and illicit activities facilitated by what Bragg described as a "shadow financial system." The push for stronger oversight coincides with concerns from federal lawmakers regarding the SEC's enforcement approach toward digital asset securities.

bitcoinist01/17 11:05

CRYPTO Act Proposal: Unlicensed Operations In New York Could Lead To 15 Years In Prison

bitcoinist01/17 11:05

Senate Judiciary flags DeFi oversight ‘gaps’ in U.S. crypto bill

The Senate Judiciary Committee, led by Chuck Grassley and Dick Durbin, has raised concerns about the CLARITY Act, a broader crypto market structure bill. They warn that exemptions in the bill could allow DeFi software developers to avoid financial licensing requirements for money-transmitting businesses, potentially weakening federal criminal code enforcement tools used by the Department of Justice. The Judiciary Committee argues it was not consulted on these changes and urged the Senate Banking Committee to reject the exemptions, citing risks such as enabling money laundering. In response, the Banking Committee defended the protections for developers, stating the provisions fall under its jurisdiction and aim to prevent unfair prosecution of those without control over funds or transactions. The bill faces further uncertainty after Coinbase withdrew support, and the White House reportedly warned the exchange to return to negotiations or risk losing backing. The future of the legislation remains unclear.

ambcrypto01/17 10:02

Senate Judiciary flags DeFi oversight ‘gaps’ in U.S. crypto bill

ambcrypto01/17 10:02

After National Intervention: The Reshaping of the 2025 Cryptocurrency Crime Landscape

State-level actors significantly increased cryptocurrency-related activities in 2025, marking a new phase of maturity for illegal on-chain ecosystems. Illicit addresses received at least $154 billion, a 162% year-over-year increase, largely driven by a 694% surge in transactions involving sanctioned entities. Stablecoins dominated illegal transactions, accounting for 84% of the total. North Korean hackers stole a record $2 billion, including a historic $1.5 billion attack on Bybit. Russia launched the rubleksandrovich (A7A5) token to evade sanctions, processing over $93.3 billion in transactions within a year. Iranian proxy networks and China-based money laundering groups also expanded operations, offering specialized criminal services like fraud, terror financing, and sanctions evasion. Illegal infrastructure providers now offer full-stack services—domain registration, hosting, and technical support—enabling both cybercriminals and state actors to scale malicious activities. Cryptocurrency is increasingly linked to real-world violence, including human trafficking and coerced asset transfers. Despite illicit activity growing, it remains below 1% of all traceable cryptocurrency transactions. Collaboration among law enforcement, regulators, and crypto firms is critical to address these evolving threats.

比推01/12 04:03

After National Intervention: The Reshaping of the 2025 Cryptocurrency Crime Landscape

比推01/12 04:03

Vitalik Buterin Condemns Criminalization of Code, Speaks Out for Tornado Cash Developer

Ethereum co-founder Vitalik Buterin has publicly defended Tornado Cash developer Roman Storm, who was convicted in August on charges of conspiracy to commit unlawful money transmission and faces up to five years in prison. Buterin argued that the case criminalizes software development itself rather than addressing direct financial harm, emphasizing the importance of privacy tools as essential defenses against systemic data exploitation. He disclosed personal use of Storm’s software for charitable and technical purposes, praising its reliability compared to commercial alternatives. Storm’s legal defense has received substantial support, with over $6.39 million raised in 2025, including donations from Buterin, the Ethereum Foundation, and other crypto entities. This case is part of a broader global crackdown on privacy-focused developers. Tornado Cash co-founder Alexey Pertsev was sentenced to 64 months in prison in the Netherlands, while Samourai Wallet founders received multi-year sentences in the U.S. for similar charges. Advocacy groups are pushing for legislative protections for software developers, amid high-level political attention, including a potential case review by former President Donald Trump.

marsbit01/12 03:36

Vitalik Buterin Condemns Criminalization of Code, Speaks Out for Tornado Cash Developer

marsbit01/12 03:36

National-Level Players Enter the Game: Deciphering the Escalation and Transformation of Crypto Crime in 2025

In 2025, state-level involvement in cryptocurrency-related activities has significantly increased, marking a new phase in the maturation of illicit on-chain ecosystems. Illicit addresses received at least $154 billion, a 162% year-over-year surge, largely driven by a 694% increase in transactions involving sanctioned entities. Even excluding these, 2025 was a record year for crypto crime, with growth across most illegal categories. Stablecoins now dominate illicit transactions, accounting for 84% of the total. Nation-state threats were particularly prominent: North Korean hackers stole $2 billion, including a historic $1.5 billion attack on Bybit. Russia launched the ruble-backed A7A5 token, which saw $93.3 billion in transactions within a year, facilitating large-scale sanctions evasion. Iranian proxy networks and China-based money laundering networks also expanded their operations, offering specialized services like fraud, terror financing, and sanctions avoidance. The rise of full-stack illicit infrastructure providers has enabled both criminals and state actors to conduct malicious activities more effectively. Moreover, the connection between crypto crime and real-world violence is growing, with increased use in human trafficking and violent coercion attacks. Despite these challenges, illicit activity still represents less than 1% of all traceable cryptocurrency transaction volume. Collaboration among law enforcement, regulators, and crypto businesses remains crucial to address these evolving threats.

marsbit01/12 02:02

National-Level Players Enter the Game: Deciphering the Escalation and Transformation of Crypto Crime in 2025

marsbit01/12 02:02

National-Level Players Enter the Game: The 2025 Revelation of Cryptocurrency Crime Spiraling Out of Control

Summary: In 2025, state-level cryptocurrency activity surged, marking a new phase in the maturation of illicit on-chain ecosystems. Illicit addresses received at least $154 billion, a 162% year-over-year increase, largely driven by a 694% spike in transactions involving sanctioned entities. Stablecoins dominated these flows, accounting for 84% of all illicit transaction volume. Key trends include North Korean hackers stealing a record $2 billion, including the largest crypto theft in history from Bybit. Russia launched the ruble-backed A7A5 token, which saw $93.3 billion in transaction volume within a year, facilitating large-scale evasion. Chinese money laundering networks emerged as dominant, sophisticated operators offering full-service criminal enterprises. Iran-linked proxy networks moved over $2 billion for activities including oil sales and weapons procurement. Illicit actors and nations increasingly rely on full-stack infrastructure providers resistant to takedowns and sanctions. Furthermore, the connection between crypto and real-world violent crime is growing, with increased use in human trafficking and a rise in violent coercion attacks to seize crypto assets during price peaks. Collaboration between law enforcement, regulators, and crypto firms is crucial to counter these evolving, interconnected threats.

marsbit01/10 04:10

National-Level Players Enter the Game: The 2025 Revelation of Cryptocurrency Crime Spiraling Out of Control

marsbit01/10 04:10

North Korean Hackers Celebrate a 'Fat Year': Record $2.02 Billion Stolen in 2025, Money Laundering Cycle Approximately 45 Days

North Korean hackers set a record in 2025, stealing $2.02 billion in cryptocurrency, a 51% increase from 2024, despite a decrease in the number of attacks. Their cumulative thefts now total at least $6.75 billion. They achieved this by conducting fewer but more sophisticated attacks, often through infiltrating crypto services with IT workers or using complex impersonation strategies against executives. The overall crypto industry suffered over $3.4 billion in stolen funds. A key trend is the extreme concentration of losses, with the top three hacks accounting for 69% of the total. The disparity between the largest attack and the median hack reached a record 1000x. North Korean actors exhibited distinct money laundering patterns, heavily favoring Chinese OTC services, cross-chain bridges, and mixers. Their laundering cycle for major heists is approximately 45 days, moving through stages of immediate layering, initial consolidation, and final cash-out. Simultaneously, individual wallet thefts surged to 158,000 incidents affecting 80,000 users, though the total value stolen ($713 million) decreased. In a positive development, DeFi hacking losses remained low despite increased Total Value Locked (TVL), indicating improved security measures are having a significant impact. A case study of the Venus Protocol demonstrated effective real-time threat detection and fund recovery.

marsbit01/10 03:10

North Korean Hackers Celebrate a 'Fat Year': Record $2.02 Billion Stolen in 2025, Money Laundering Cycle Approximately 45 Days

marsbit01/10 03:10

Supreme Court Decision Expands Crypto Seizure Powers in South Korea

South Korea's Supreme Court has ruled that Bitcoin held on domestic cryptocurrency exchanges is subject to seizure under the Criminal Procedure Act, resolving years of legal uncertainty. The December 2025 decision, announced in early 2026, stemmed from a money laundering case where 55.6 Bitcoin were seized from an exchange account. The court dismissed the defense's argument that Bitcoin is intangible and therefore not seizable, stating that seizable property includes electronic data and assets of economic value. It determined Bitcoin qualifies as it can be "independently managed, traded, and economically controlled." This precedent strengthens prosecutors' power to confiscate crypto assets in crimes like money laundering and fraud, aligning with the country's stricter regulatory approach. The ruling is expected to compel exchanges to enhance cooperation with law enforcement.

TheNewsCrypto01/09 15:53

Supreme Court Decision Expands Crypto Seizure Powers in South Korea

TheNewsCrypto01/09 15:53

South Korea’s Supreme Court Just Put Over $33B in Crypto at Risk? — What Upbit and Bithumb Users Need To Know

South Korea's Supreme Court has ruled that Bitcoin and other cryptocurrencies held on domestic exchanges are seizable property in criminal investigations, placing them on the same legal footing as cash or securities. The landmark decision, issued on January 8, arose from a money laundering case where prosecutors confiscated 55.6 BTC from a suspect's exchange account. The court rejected arguments that Bitcoin's intangible nature exempted it from seizure, defining it as an "electronic asset with economic value." This ruling strengthens law enforcement's ability to freeze and seize digital assets on platforms like Upbit and Bithumb during investigations into financial crimes, money laundering, or tax evasion. While this clarifies regulatory oversight and aligns South Korea with jurisdictions like the U.S. and U.K., it also raises concerns for users holding over $33 billion in crypto on these exchanges. The decision may encourage a shift toward self-custody among users seeking to avoid potential enforcement actions, though seizures remain limited to cases with proper legal grounds.

ccn.com01/09 09:26

South Korea’s Supreme Court Just Put Over $33B in Crypto at Risk? — What Upbit and Bithumb Users Need To Know