Crypto OTC trader Zhao Dong arrested

The defendant, who was using the online alias “Magic Leap” Zhao Dong engaged in the illegal OTC trade of digital currency on a large scale. In late 2013, he began to engage in a number of crypto-currency trading platforms such as OKCoin, Huobi and BTC China. At present, Zhao Dong has been charged with fraud involving more than 2.2 billion yuan ($343 million). The court hearing that he faces an indictment for fraudulent fundraising and operating an illegal exchange business.

Zhao was arrested last Friday at the airport in Beijing on suspicion of fundraising fraud. According to local news reports, Zhao and his company have been accused of illegally raising funds and issuing cryptocurrencies backed by “false” assets.

Zhao has been one of the most popular figures in the Chinese crypto community since early 2010. He made his first appearance on bitcoin forums after the successful launch of bitcoin exchange website Bitcoinica, which is now defunct. In 2012, he founded BTC China to cater to the fast-growing Chinese market. He is a managing partner of Impression Ventures, with interests in financial technology, and has founded several companies: RenrenBit, a crypto-to-crypto exchange; B612 Foundation which aims to discover and track asteroids that could pose a risk to earth; Mediachain Labs an open source decentralized data management tool for the media industry.

Zhao is accused of trading partners for a money-laundering scheme called “Day Day Up”. He is charged with laundering money from various Chinese cities to the United States through his business in China.

Day Day Up is the only third-party platform on Paofen. It’s run by a Beijing-based company that’s part of a broader network of startups called Techbang. Techbang, which also owns and operates other platforms like Trendbang and Geekbang, has raised more than $200 million in funding to date from companies like Tencent, Alibaba and Sequoia. This scheme is designed in such a way that it can help you launder money through a number of payment accounts. It would be easy to use this scheme for criminal activities as it doesn’t require any technical skills or any special equipment. By making a payment in exchange for a voucher with an expiration date, criminal activities may still have access to the funds on the voucher after it has expired. If that happens, there is no way to reverse the process or trace back where the money came from. What the Day Day Up group lacks in political clout, it makes up for in sophistication. According to a recent report by the Xinhua News Agency, “The company has been laundering money through legal means such as trips and online gambling.”

The core members of the team have been together for nearly two years. The first half of 2019 was a relatively peaceful period for them as they had gone on to develop a more robust digital currency trading platform. The second half of 2019 witnessed their shift into large-scale scamming, with the three core members heavily using USDT accounts with deposits ranging from 478,000 to 1,402,000 USDT depending on when they wanted to commit fraud. Day Day Up has helped resolve 1,900 cases of online gambling and telecommunication fraud on the Paofei platform. The Hangzhou police arrested 85 people in May 2020, including the team behind the Day Day Up platform and their crypto trading counterparties. They were charged with unauthorized fund-raising, illegally issuing electronic money and illegal securities trading. The report said that from 2015 to 2017, Zhang Yuequan, Zhao Qi’an Gang Xiong and others set up two companies with a total of eight staff members in Hangzhou city to engage in virtual currency business.

Zhao has been charged with assisting internet criminal activities, including DDoS attacks and illegal surveillance of individuals. He was listed on the FBI’s “10 Most Wanted Fugitives” list, as well as the Interpol’s Red Notice in October 2001. Zhao Dong was charged with assisting internet criminal activities.

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