The Shanghai court has revealed an illegal USDT exchange scheme worth $6.5 billion operated by Yang and Xu using shell companies.
Details of the USDT Exchange Scheme
According to the Shanghai court, Yang and Xu utilized shell companies to conduct illegal currency operations with USDT totaling $6.5 billion. Over three years, they evaded regulatory oversight by splitting a single regulated forex transaction into two separate ones.
Regulatory Implications and Risks
This operation emphasizes the complex legal aspects and risks involved in cross-border cryptocurrency transactions. Legal experts highlight the need for more stringent regulations to effectively combat such schemes.
Recommendations for Improved Regulation
Proposed regulatory measures could reshape the future of cryptocurrency exchanges and impact trading strategies globally. History shows that similar illegal practices have been uncovered in Beijing and Chongqing, underscoring the common use of stablecoins like USDT in such schemes.
The exposure of this scheme directs attention to the necessity of enhancing oversight of cryptocurrency transactions and the potential impact of future regulatory actions on global trading strategies.
