Chinese Officials Crackdown On Crypto-based FIFA Gambling Platform Seizing $1.5M So Far
Chinese officials confiscated over $1.5M in digital currency due to major gambling crackdown during this year’s FIFA World Cup.
On June 11, Xinhua, a Chinese media outlet, released a report stating that state officials initially caught wind of a gambling website that began to gain popularity since May. The site offered to accept all recognized digital currencies such as bitcoin, Litecoin, as well as ether, in hopes of attracting members.
According to Xinhua, Chinese authorities launched an investigation following the release of an advertisement linked to the site. The gambling platform, discovered to be stationed abroad, combines the concept of cryptocurrency with a model used by most traditional online betting structures.
It was also determined that the website dodged regulations by means of legal loopholes facilitating the gain of profits by disguising them in the form of cryptocurrencies.
Reports suggested that throughout the span of several months, the site acquired a whopping 333K members accounting for a minimum of $1.5B dollars via transactions.
As a result, Chinese officials have managed to trace and arrest a total of six site organizers in addition to freezing linked accounts containing $1.5M dollars in addition to $750K worth of renminbi.
A Guangdong police spokesman reported that crack downs will continue to be a main focus in efforts to deter unregulated sports-based gambling. The department publicly advised World Cup fans to enjoy matches in a responsible and rational manner.