Chinese authorities have dismantled a massive underground banking operation involving approximately $2 billion worth of Tether (USDT).

**China Uncovers Massive Underground Banking Operation Despite Crypto Bans**Chinese police have exposed a vast underground banking operation utilizing the Tether (USDT) stablecoin, despite the government's strict cryptocurrency bans. The Chengdu Municipal Public Security Bureau revealed the discovery of this illicit operation on May 15, capping off an investigation that commenced in November 2022.The organization primarily utilized USDT to bypass foreign exchange regulations and facilitate illegal foreign exchange transactions. By leveraging cryptocurrency, the group escaped the need for intermediaries present in traditional payment systems and maintained anonymity.Despite China's official ban on cryptocurrency and centralized exchanges in 2021, individuals have devised alternative means to access and trade digital assets. Decentralized exchanges and decentralized finance (DeFi) protocols have emerged as substitutes for traditional trading platforms. Some have even resorted to using virtual private networks (VPNs) to cloak their activities.While crypto trading remains prohibited in mainland China, the recent launch of spot Bitcoin and Etherium exchange-traded funds (ETFs) in Hong Kong has offered Chinese investors legal exposure to these digital assets. The CEO of China AMC, Yimei Li, believes these ETFs represent a significant step in making cryptocurrency accessible to mainland Chinese investors.The surge in popularity of these ETFs has been evident, with mainland Chinese investors swiftly flocking towards them. This unprecedented adoption highlights the eagerness of Chinese investors to engage in the cryptocurrency market despite the government's restrictive measures.