Chinese prosecutors have successfully dismantled a sophisticated money laundering operation that utilized virtual currency and fake Maotai liquor sales, according to ChainCatcher. The Yuetang District People’s Procuratorate of Xiangtan City, Hunan Province, handed down a first-instance verdict against eight defendants involved in the scheme, which laundered over RMB 6.84 million. The operation involved a complex network where Chen coordinated with overseas actors using encrypted communication to receive funds from telecom fraud, converting them into cryptocurrency through "USDT traders." Xie provided tools and tracked financial details, while Huang used fake Maotai sales to disguise illicit funds as legitimate business income. The gang took an 8% commission per transaction. Following a victim's report in December 2023, authorities intervened, analyzing nearly RMB 20 million in fund flows to dismantle the network. Sentences ranged from two to six years, with one defendant receiving a suspended sentence.