Chinese police seize $3.8m in illegal crypto gambling funds

The Chinese police have cracked down on a decentralized gambling app (dApp) running on the EOS network in Yancheng, Jiangsu.

Following the success of tackling the PlusToken Ponzi scheme, police have now raided the offices of a dApp, apprehending 15 people in the process.

A total of $3.8m in illegal gambling funds have been seized in the form of EOS and BTC cryptocurrency. The police noted that this is the first time criminals have used blockchain technology to operate illegal gambling businesses within China.

For the most part, such businesses have tried to run out of the country for fear of prosecution.

The gambling app, known as Biggame, offered a range of products, including Dice and Texas Hold’em poker. According to police reports, the app generated around $10m between June 2018 and December 2020.

Despite blockchain’s anonymity, the police have been able to improve their understanding of the technology and are now capable at running forensic analyses of on-chain transactions and singling out suspicious addresses. In fact, the police detected 26 smart contract addresses that were clearly associated with Biggame.

While identifying illegal operations should always be a priority, over-zealous police forces may have a bit of a negative impact on the development push by regulated companies who may be more reluctant to move.

China is currently in the midst of its “Internet Cleansing Movement”, which focuses on illegal or immoral websites.

While some crypto businesses have gone bust, those operating legally out there have enjoyed a steady growth. Bitcasino, 1xBit and FortuneJack are all worth a visit.


Updated: 04/16/2021 — 10:00