Following an investigation, Zhao Dong, the “OTC King” and founder of RenrenBit, was given a seven-year prison sentence, according to China.
Zhao Dong, the creator of the over-the-counter (OTC) cryptocurrency trading desk RenrenBit, which allowed trading in both cryptocurrencies and local currencies, was sentenced to seven years in prison. According to reports, the Supreme Procuratorate of China has disclosed the specifics of this sentence.
Zhao, also known as the “OTC King,” was found guilty on December 27 by the Chinese legal prosecution office for running a cryptocurrency business and taking part in foreign exchange transactions without a licence. The action draws attention to the country’s ongoing crackdown on cryptocurrencies, which are still illegal.
According to reports, the authorities unveiled a detailed investigation that focused on accounts connected to the alleged crimes and unravelled the intricate financial transactions. To compile evidence against Zhao and his associates, the authorities turned to witness statements, bank records, communication logs, and confessions.
Zhao and his associates argued in three public hearings that they were not engaging in foreign exchange trading during the case. They claimed that their activities did not amount to unlawful business operations because they were simply digital currency transactions. Nonetheless, the prosecution offered proof about foreign currency in Zhao’s and his group’s chat logs.
Zhao received funds from foreigners, as confirmed by several related recipients. According to the report:
“All defendants acknowledged that Zhao and other individuals in Dubai gathered cash in dirhams, transferred RMB to the other party’s assigned account, purchased Tether using dirhams, and permitted the domestic gang to resell it for RMB illegally.”
Eventually, a court rendered a decision, fining Zhao 2.3 million Chinese yuan ($325,000) and sending him to seven years in prison.