China's Police Detained Zhao Dong For Cryptocurrency Money Laundering - eCompareFX

China is fighting against digital currency trading and detaining OTC traders and platform operators to assist them with investigations. Zhao Dong, one of China’s richest traders and investor in Bitfinex. As Dong was detained this week, the news about his detention emerged on social media channels first. The local blockchain news outlet then reported with claims of people claiming he was in Yancheng while he was detained in Hangzhou.

As the rumors spread, Dong’s OTC digital currency and a lending company called RenrenBit shed more light on social media. RenrenBit revealed that the police had detained Dong since after his arrival from Japan to China. RenrenBit also claimed that Dong was actively assisting the police in the cryptocurrency’s anti-money laundering investigations. The company also stated that Dong wasn’t the only trader that had been detained, it claimed that another OTC team had been detained by the police in Beijing. But the company clarified that it was just detention and no other team was arrested.

While speaking with CoinDesk a source revealed that Dong’s detention isn’t a targeted attack on him. In fact, it’s the government’s plan to stamp out OTC trading in China. The source also claimed that the police in China have is scrutinizing the OTC platforms at close proximity.

As Zhao Dong remains one of the most renowned traders, his case falls in the high-profile category. The detentions started by the government freezing over 4,000 bank accounts belonging to OTC traders. Authorities in Guangdong province froze the accounts as well according to the CoinGeek.