Core Viewpoint - The case of illegal foreign exchange operations involving individuals identified as Tong and Chen has been successfully investigated by the Shenyang Public Security Bureau, highlighting the complexities of cross-border financial crimes and the importance of international cooperation in law enforcement [1][2][3]. Group 1: Case Development - In April 2024, a tip-off from the U.S. regarding Tong's involvement in money laundering for drug traffickers prompted a thorough investigation by Chinese authorities [1]. - The Shenyang police established a task force to address challenges such as fragmented leads and differences in legal systems between China and the U.S., leading to the collection of crucial evidence [1][2]. - By May 20, 2024, Tong and Chen were apprehended in Wuhan while attempting to flee the country, following extensive evidence collection across multiple provinces and cities [2]. Group 2: Criminal Activities - Since 2017, Tong and associates operated a car dealership in the U.S., initially providing currency exchange services before shifting to illegal foreign exchange operations [2]. - From January 2020 to June 2021, Tong directed Chen and others in China to facilitate illegal currency exchanges, amassing over 16 million RMB through domestic bank accounts [2][3]. - Tong also engaged in virtual currency transactions, purchasing Bitcoin and Tether to facilitate cash exchanges, primarily serving students and gamblers in the U.S. [3]. Group 3: Legal Proceedings - The case was transferred to the prosecutorial authority on November 26, 2024, and by September 2025, both Tong and Chen were sentenced to prison terms of 1 year and 7 months, and 1 year and 4 months respectively, along with fines for their illegal foreign exchange activities [3].

Core Viewpoint - The case of illegal foreign exchange operations involving individuals identified as Tong and Chen has been successfully investigated by the Shenyang Public Security Bureau, highlighting the complexities of cross-border financial crimes and the importance of international cooperation in law enforcement [1][2][3]. Group 1: Case Development - In April 2024, a tip-off from the U.S. regarding Tong's involvement in money laundering for drug traffickers prompted a thorough investigation by Chinese authorities [1]. - The Shenyang police established a specialized task force to address challenges such as fragmented leads and differences in legal systems between China and the U.S., leading to the collection of crucial evidence [1][2]. - By May 20, 2024, Tong and Chen were apprehended in Wuhan while attempting to flee the country, following extensive evidence collection involving 25 teams across 16 provinces and 43 cities [2]. Group 2: Criminal Activities - Since 2017, Tong and associates operated a car dealership in the U.S., initially providing currency exchange services before shifting to illegal foreign exchange operations [2]. - From January 2020 to June 2021, Tong utilized a "matched transaction" method, directing Chen and others in China to handle currency exchanges, resulting in over 16 million RMB in illegal foreign exchange transactions [2][3]. - Tong also engaged in virtual currency transactions, purchasing Bitcoin and Tether to facilitate cash exchanges, primarily serving students and gamblers in the U.S. [3]. Group 3: Legal Proceedings - The case was transferred to the prosecutorial authority on November 26, 2024, and by September 2025, both Tong and Chen were sentenced to prison terms of 1 year and 7 months, and 1 year and 4 months respectively, along with fines for their illegal foreign exchange activities [3].

Core Viewpoint - The rise of international gift cards has led to a new form of crime in China, where illegal trading of these cards is used to exploit currency exchange differences, posing a threat to financial order [1][6][7]. Group 1: Criminal Activities - A criminal gang was formed to illegally trade international gift cards, using a network company as a facade for their operations [2][3]. - The gang utilized cross-border chat applications to purchase gift cards from foreign holders and sold them domestically, profiting from the currency exchange rate differences [2][5]. - The total illegal operating amount for the network company reached 537.2 million yuan, while the trading volume for the trading company was 9.58 million yuan, with profits exceeding 7 million yuan from currency arbitrage [5]. Group 2: Legal Proceedings - The case was initiated after police received tips about illegal activities in the area, leading to the arrest of the gang members [4][6]. - The defendants claimed their actions were legal, but evidence from chat records and financial transactions indicated their awareness of the illegal nature of their activities [4][6]. - The court sentenced 20 defendants to prison terms ranging from 5 months to 7 years and 6 months, with fines imposed, which were upheld upon appeal [6][7]. Group 3: Regulatory Implications - The illegal trading of international gift cards disrupts financial order and poses significant challenges to economic security in China [7][8]. - The case highlights the need for improved regulatory mechanisms and collaboration among law enforcement, foreign exchange management, and market supervision agencies to combat such illicit activities [7][8]. - The characteristics of this crime include strong concealment, complex payment methods, and a well-organized structure, indicating a complete criminal industry chain [8].