"Chinese crypto exchange BTCC suspected of illegal operations using disguised accounts"
Summary
- Chinese crypto exchange BTCC was detected operating illegally domestically using 'disguised accounts'.
- BTCC is known to have avoided government monitoring by frequently changing deposit accounts and continued topping up Tether (USDT) through personal-name accounts.
- This method is a workaround banned since the enforcement of the Act on Reporting and Using Specified Financial Transaction Information, and it warned that there is a risk of misuse of investors' deposits, so extra caution is needed for related investments.
Chinese crypto exchange BTCC is reported to have conducted illegal operations domestically using 'disguised accounts'.
On the 13th, industry sources said that after BTCC's official app was removed from the App Store, it re-registered the app under the name 'BTCC Lite' and has been operating by encouraging users to transfer funds to personal accounts at Woori Bank, NongHyup Bank, Gyeongnam Bank, Korea Post, etc., and then crediting the same amount in Tether (USDT). It was also reported that deposit accounts were changed frequently to avoid government monitoring.
This method is a typical workaround banned since the enforcement of the Act on Reporting and Using Specified Financial Transaction Information, making it difficult to trace money flows and increasing the risk of misuse of customer deposits, and is therefore defined as 'illegal'. Previously, BTCC had been classified by the Financial Intelligence Unit (FIU) as an unreported overseas exchange and had been blocked from domestic access.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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