Hunan Yueyang police have dismantled a major black-and-gray industry chain that laundered nearly 170 million yuan under the guise of virtual currency trading. On July 18, a special task force of over 70 officers conducted simultaneous raids across more than 10 locations, targeting a network that used cryptocurrency transactions to launder funds for overseas gambling, fraud, and pornographic livestreaming operations. The operation revealed a sophisticated four-tiered money laundering scheme involving overseas financiers, domestic "dummy accounts," and a network of agents and "drivers" who facilitated the transfer and conversion of illicit funds into USDT. The ring, which operated as "blockchain OTC merchants," utilized the encrypted chat app "Paper Plane" to attract participants. Fifteen suspects have been arrested, and the investigation is ongoing.