Major Drug Trafficking Operation Uncovered
Chinese authorities have sentenced a convicted drug trafficker to death after investigators linked him to a large-scale money laundering scheme involving more than 48 million yuan ($7 million) in crypto transactions.
According to prosecutors, the individual, identified as Li Mobo, played a key role in a cross-border drug trafficking network that used digital assets to move illicit funds across borders and avoid financial oversight.
Crypto Used to Move Illegal Funds
Authorities said the operation converted cash and bank transfers into crypto, allowing criminal proceeds to be transferred more discreetly. The scheme allegedly handled over 48 million yuan before being dismantled by law enforcement.
Li was convicted on multiple charges, including drug smuggling, trafficking, transportation, and money laundering. The death sentence was handed down under China’s combined sentencing framework, which considers all convictions together rather than focusing solely on the laundering offense.
China Steps Up Enforcement
At a press conference on June 25, China’s Supreme People’s Procuratorate revealed that more than 1,200 people have been prosecuted in drug-related money laundering cases between January 2025 and May 2026.
Officials said authorities are increasing efforts to track blockchain transactions, recover illegal assets, and target both criminal organizations and third-party laundering networks that use crypto to conceal the movement of funds.
The case highlights China’s continued crackdown on financial crimes involving digital assets as regulators expand investigations into cross-border money laundering and other illicit activities.
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