The Chinese government had just begun to celebrate the nation\u2019s digital Yuan as a secure and centralized digital payment method when the Xinmi police cracked down on the first-ever money laundering racket using China\u2019s CBDC. The Xinmi Public Security together with the Anti-fraud Center of the Zhengzhou Public Security Bureau arrested 11 suspects in the Fujian Province for illegally using digital Yuan to launder money. Additionally, the authorities revealed that the gang members were using China\u2019s CBDC to further launder money for an overseas fraud group hiding in Cambodia. China CBDC Scam via telecommunications The CBDC fraud was executed by the use of a telecommunications network in Xinmi City. Victims of the fraud would receive random calls concerning their faulty online purchase, referring to quality issues, and the scammer would offer to further compensate the buyer for the mistake, at three times the price of the product. The scammers would ask the victims for verification, which also included multiple transfers via digital yuan. According to local news, the Criminal Investigation Brigade of the Public Security Bureau of Xinmi City revealed that multiple payments were being transferred into a specific electronic wallet, but the transaction mode of the wallet was different from that of the previous online payment. The alleged culprits are currently detained for criminal investigation by Xinmi City Public Security Bureau.\u00a0 China Digital Yuan is not immune to illegal financial activities According to China\u2019s digital renminbi experts, the feature of \u201ccontrollable anonymity\u201d in China\u2019s CBDC guarantees \u201creasonable anonymous transactions\u201d, along with personal information protection. However, the main focus of digital yuan has been to \u201cprevent, control, and combat money laundering, terrorist financing, tax evasion, and other illegal and criminal activities, and to maintain financial security\u201d. Yet, the digital renminbi\u2019s inability to abolish financial crimes that fir the category of former crimes using cryptocurrencies has raised considerable concerns about the use of China\u2019s CBDC. Authorities have informed local news that the central bank has found that several gray and black industries have incorporated the digital renminbi for illegal activities further causing CBDC losses in millions. The post Breaking: China Reports First Case of Money Laundering Using Digital Yuan appeared first on Coingape.