Malaysian Police Bust ‘USDT-powered Crypto Exchange’ – Suspects ‘Sold Crypto to China’
Malaysian police have swooped on what they suspect to be an illegal, international USDT-powered crypto exchange.
Forty people were arrested.
The exchange was allegedly allowing Mainland Chinese citizens to trade USDT for cash.
Per the Malaysian media outlet Oriental Daily, the bust was co-conducted by the police’s commercial crime investigation team and the National Financial Crime Center.
Officers claimed they have completely dismantled the “exchange,” which it also suspects of providing “illegal online gambling” services.
Detectives said they had been investigating the suspected exchange for some time.
They said that the exchange had systematically “converted money received” from China into USDT.
It then allegedly “transferred the tokens back to [individuals in] China.”
Officers claimed to have found evidence that the group “carried out cryptocurrency exchange activities” in Malaysia “without permission.”
Under Malaysian law, all crypto-related firms must register their activities with regulators.
Crypto firms that fail to obtain operating permits are subject to punishment.
Earlier this month, the nation’s Securities Commission ordered Huobi Global to halt operations in Malaysia.
The commission ordered Huobi Global to disable its website and mobile apps on marketplaces like Apple Store and Google Play.
Many Chinese citizens’ appetite for crypto is thought to remain strong, despite the nation’s ban on crypto buying.
Cryptonews.com has seen evidence of apparently Mainland China-based individuals trading USDT for Bitcoin (BTC) and other coins via overseas platforms after the 2021-2022 ban.
Malaysian police units raided multiple addresses simultaneously, with both male and female suspects detained.
The police issued a statement explaining
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