China has sentenced a convicted drug trafficker to death after authorities found he laundered more than 48 million yuan, about $7.04 million, through cryptocurrency as part of a major cross-border narcotics operation.
- China sentenced a convicted drug trafficker to death after prosecutors said he laundered more than 48 million yuan through cryptocurrency.
- Prosecutors said more than 1,200 people have been charged in drug related money laundering cases between January 2025 and May 2026.
- Chinese authorities said they are expanding enforcement against cryptocurrency based money laundering and stepping up efforts to recover illicit digital assets.
China’s Supreme People’s Procuratorate said at a June 25 press conference that prosecutors have intensified investigations into both “self money laundering” and “third party money laundering” tied to drug crimes, leading to the prosecution of more than 1,200 people nationwide between January 2025 and May 2026.
Deputy Chief Procurator Miao Shengming said the campaign has also focused on recovering assets linked to narcotics offenses and ensuring that every identified drug-related money laundering case faces investigation and prosecution.
The Supreme People’s Procuratorate also disclosed details of a major cross-border drug trafficking and money laundering case handled by prosecutors in Chongqing under direct supervision from the country’s top prosecutorial authority.
Authorities said defendant Li Mobo laundered more than 48 million yuan through virtual currency before the court convicted him of cross-border drug smuggling, drug trafficking, drug transportation, and money laundering.
Chinese courts imposed the death penalty under the country’s combined punishment framework, which allows multiple convictions to be sentenced together. The death sentence was not based solely on the money laundering offense.
Cryptocurrency laundering linked to drug trafficking
According to the Supreme People’s Procuratorate, the criminal network used cryptocurrency to conceal the movement of illicit proceeds generated through cross-border drug trafficking.
Prosecutors said the laundering scheme converted cash and domestic bank transfers into digital assets, allowing more than 48 million yuan to move across borders while avoiding traditional banking oversight and capital controls.
Miao said prosecutors have expanded enforcement against both traffickers who convert their own criminal proceeds into cryptocurrency and organized groups that provide laundering services to others. Authorities are also prioritizing the recovery of drug-related assets by tracing blockchain transactions and freezing illicit digital holdings connected to criminal organizations.
The Chongqing case formed part of China’s wider campaign against cryptocurrency-enabled financial crime. Earlier this week, the People’s Bank of China announced that virtual currency money laundering remains one of its principal enforcement priorities under the country’s anti-money laundering strategy.
The central bank added that Chinese authorities have expanded investigations into professional money laundering groups, cross-border fund transfer networks, telecom fraud, online gambling, underground banking operations, and virtual currency-based financial crimes. Officials also said investigators have adopted a dual investigation approach that examines both the underlying criminal activity and the laundering networks used to move illicit funds.
According to the PBOC, Chinese courts have issued more than 2,000 judgments under Article 191 of the Criminal Law during 2025, while regulators continue to strengthen enforcement cooperation, intelligence sharing, and asset recovery in cases involving cross-border financial crime.
