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Chinese OTC Trader Zhao Dong’s Trial Begins

The trail of the famous over-the-counter crypto trader Zhao Dong has started in Hangzhou district court. Wednesday’s live stream of the proceedings suggested that the crypto millionaire from China faces charges of assisting illicit activities on the internet.

Legal experts suggest that the defendants could face as many as three years in prison and a significant amount in fines. Under the strict Chinese laws, the charge against the crypto trader is defined as offering someone internet, information technology, advertisement, and settlement of payments, knowing that the recipient is involved in illegal activities.

This month, Chinese officials have charged nearly one hundred people with charges of money laundering using the crypto assets. Moreover, if an individual or company is convicted of concealing criminal cyber activities, they could face more than seven years in jail.

Zhao’s case is part of a wider crackdown of authorities on Ponzi schemes, telecommunication crimes, and firms that facilitated the process. Given the fame and respect of the trader in the digital assets community of China, his case has drawn a lot of attention.

Not only is he among the early members of the community, but Zhao Dong is also associated with Bitfinex as a minor shareholder. Plus, for several years, he has been handling OTC desks. Last year, he was arrested by the local law enforcement amid a probe on OTC desks assisting criminals in money laundering.

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