China closes illegal crypto bank with 2 billion in stablecoins while Solana pumps

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Last Updated on 18 May 2024 by CryptoTips.eu

Chinese investors have been looking for a way to protect their assets against devaluation for years now. Apparently some criminals in Chengu had understood this and opened an illegal crypto bank that already had 2 billion in stablecoins in its possession. Police closed down the operation this week.

Over in the altcoin market it was striking to see that Solana is having a particularly good week. Arthur Hayes fangirling the coin probably has something to do with it.

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Illegal

Back in 2019, the government in Beijing decided that Bitcoin mining companies as well as crypto itself was illegal on its territory as from that moment on. Only in Hong Kong was it still allowed (although never officially).

Several Bitcoin mining companies moved to the United States or to Kazakhstan. Many in China were already thinking about the launch of the e-Yuan, China’s own cryptocurrency. That has not been a success so far and the Chinese economy has also performed less well in recent years.

That is why many Chinese have traveled to Hong Kong in the last few months to convert their savings (which are quoted in the devaluing Yuan) into, for example, Tether or other stablecoins.

Apparently not everyone had the opportunity to travel to Hong Kong and so some criminals had started an illegal crypto bank in Chengu. There, Chinese people could convert their savings from Yuan into Tether, the stablecoin pegged to the US dollar.

Given the rising tension between China and the United States, the authorities obviously could not allow this and so they closed the illegal banking operation this week.

It had grown quite large already. Chinese police arrested 193 suspects in 26 provinces and seized hundreds of millions of Yuan.

Solana pumps

Solana, meanwhile, is trading around $170 again after the cryptocurrency fell to a level of $130 in April (after peaking at $200 in mid-March). The revival coincides with a new tweet from Arthur Hayes, the well-known crypto billionaire, which indicated that he is still a big fan.

Arthur said: “SOL is in one of those moods. Are we back yet?”

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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