Many Dongguan OTC merchants were detained for concealing criminal proceeds. Huobi's "regular transactions" had low profits and turned to over-the-counter transactions.

Wu said blockchain learned that according to Chinanews.com Hubei News, on April 19, Enshi police reported that they had successfully arrested two criminal suspects who used the "USDT" virtual currency for illegal over-the-counter transactions. In March of this year, Wang, a resident of Taiyanghe Township, Enshi City, was defrauded of 375,000 yuan by investing in lottery tickets online. The police analyzed the 10 suspected accounts involved in the case one by one. Through the analysis of the capital flow and information flow of the 10 accounts, it was found that part of Wang's defrauded funds were transferred to an account named Yun in various ways to buy "USDT" virtual currency. Subsequently, the Anti-Fraud Center of the Enshi State Public Security Bureau expanded the tracking and found that Yun, Jia and others frequently engaged in abnormal currency trading. On April 9, the task force went to Guangdong to make arrests, and finally arrested the criminal suspects Yun and Jia in a community in Wanjiang District, Dongguan City.

The article states: Upon investigation, from 2020 to 2021, the suspects Jia, Yun, Li (on the run) and others registered merchants on Huobi.com to buy and sell digital currencies. Because the profits from regular selling orders on the Huobi trading platform were low and there was a risk of their bank accounts being frozen by public security organs, they used WeChat, "telegram", "Bat" and other chat software to buy and sell "USDT" (Tether) in an off-site offline transaction to gain benefits. At the same time, Jia, Yun, Li and others, knowing that the funds of buyers in off-site offline transactions may be illegally obtained, still required the buyers to transfer and filter the funds multiple times before trading with them, earning profits higher than the market price. At present, Jia and Yun have been criminally detained for suspected concealment of criminal proceeds, and the case is still under further investigation.