The People's Procuratorate of Jing'an District, Shanghai, has successfully prosecuted a criminal gang involved in illegal foreign exchange conversion through cross-border virtual currency matching. The gang operated under the guise of overseas "private banks" and used an "RMB—Virtual Currency—Foreign Exchange" model to provide illicit currency exchange services. These services catered to high-net-worth clients seeking funds for overseas property purchases, immigration, or study abroad, charging a 3% service fee. Over three years, the operation involved more than 200 million yuan.
On June 10, 2026, the court sentenced five individuals to imprisonment terms ranging from six years to two years and six months, with fines between 1.5 million yuan and 300,000 yuan. Four others received non-prosecution due to minor involvement. The Shanghai Branch of the State Administration of Foreign Exchange has launched administrative investigations against the non-prosecuted individuals, aiming to establish a comprehensive "criminal accountability + administrative punishment" framework for cross-border financial governance.
Shanghai Court Sentences 5 in 200 Million Yuan Virtual Currency Exchange Case
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