Published
3 years ago on
April 16, 2021
Table of Contents
- Preliminary Investigation Confirms Suspicion
- Police Seize 1.3M In EOS and BTC
- Total Transaction Volume Crosses RMB 60M
- Chinese Police Had Earlier Seized 310,000 BTC
The Jianhu police successfully cracked China’s first case involving a decentralized digital casino, powered by EOS. The casino named “DAPP Biggame” got raided by the cops who seized over 1.3 million virtual coins and arrested 25 suspects who were involved in the case.
The total value of the coins held is more than RMB 26 million.
Preliminary Investigation Confirms Suspicion
The Jianhu police opened a preliminary investigation and, on the 13th of November, 2020, decided to open the case for further analysis. It involved resources from the departments of network security, technical investigation, and criminal investigation.
After close analysis of data from 27 million items, they sorted out the casino contract addresses that were being used for betting, lottery, and payout. The police found that large amounts of profitable funds were flowing to four suspicious accounts.
With this information, the police could make a breakthrough in the case, with the crime’s masterminds, Xie, Liu, Hu, and others being caught.
Police Seize 1.3M In EOS and BTC
The police interrogation revealed the crime’s details and how Liu and others managed to pull off the crime. They confessed to opening the virtual casino and explained in particular to the police how they withdrew the stolen cryptocurrencies, which was worth over 1.3 million in EOS and BTC. The police were also able to seize two properties and one car listed under Hu’s name, and one property in Liu’s name.
Total Transaction Volume Crosses RMB 60M
Hu’s operation, the Guangzhou Consensus Network Technology Company, needed working capital. To get some money, Hu, together with Liu and Xie, organized a group of technicians and set up an online casino using blockchain contract technology.
Hu used cryptocurrencies as a medium for betting and provided an illegal betting platform for other users. The total transaction volume crossed 420 million in digital currencies, worth more than 8 billion RMB. Out of this, the illicit proceeds totaled more than RMB 60 million.
The police also discovered that exchanges in Xiamen and Shenzen provided Hu and others with promotional and settlement services in return for a percentage.
Chinese Police Had Earlier Seized 310,000 BTC
The Jianhu Police, in January, conducted more raids on two gangs that were suspected of providing conditions for illegal gambling. This was done during the Ministry of Public Security’s “Net 2021” special operation.
A total of 11 suspects were arrested, with the discovery of 73000 gamblers on the platform and 8 billion yuan of capital. Out of this, 60 million yuan was deemed as illegal income.
These raids come hot in the heels of another significant bust when the police solved the PlusToken case and seized 310,000 bitcoins. According to Wu Blockchain, a Chinese journalist who provides exclusive news about the Chinese Crypto mining industry, the police sold the 310,000 bitcoin they had seized during the PlusToken case.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Investment Disclaimer
