Chinese Hunan Procuratorate Cracks Down on New Money Laundering Chain Using Maotai Liquor Transactions as Cover and Cryptocurrency as Channel

**Hunan Court Convicts 8 in Money Laundering Scheme Tied to Moutai, Crypto** A Chinese court has handed down first-instance sentences to 8 defendants in a money laundering case in Xiangtan’s Yuetang District, Hunan Province, state media reported. The scheme—using Moutai liquor transactions as a cover and cryptocurrency as a channel—was fully dismantled, involving over 6.84 million yuan (≈$950,000) in illicit funds. The gang operated with clear roles: - Chen coordinated with upstream actors via overseas encrypted messaging to receive telecom fraud proceeds, then contacted “U Merchants” to convert funds into crypto. - Xie provided criminal tools and compiled fund details. - Huang used sham Moutai transactions (via legitimate-looking shells) to hide money trails. - Remaining members assisted with fund settlements and information sharing. The group disguised overseas fraud gains as legitimate business income via fake liquor deals, converted them to crypto for upstream actors, and took an 8% commission per laundering transaction. The scheme was exposed in December 2023 after a victim filed a report. Yuetang District’s procuratorate intervened early, guiding police to trace nearly 20 million yuan in fund flows and massive electronic data for full-chain crackdown and evidence collection. **Sentences:** - Xie and 7 accomplices: Convicted of concealing/disguising criminal proceeds, sentenced to 2–6 years in prison. - Liang (lesser involvement): 1 year in prison, suspended for 1 year. Source: Huasheng Online