In Depth: How Cryptocurrency Gets Used to Move Billions of Yuan in and out of China

A police investigation into the world of underground banking shows how the technology has revolutionized the illegal currency exchange trade

When police in East China’s Shandong province busted Li Bi at her office in July 2023 because they suspected she was involved in an underground banking operation, they found her in possession of 10 bank cards linked to over 17 billion yuan ($2.3 billion) in transactions.

The accountant at a small textile company, who was 41 at the time, was later identified as a key virtual currency trader behind a complex scheme to move money overseas using cryptocurrencies like Tether and Ethereum. The operation helped a variety of people, including Chinese students overseas and purchasing agents to circumvent China’s strict foreign exchange limits, which cap annual personal currency exchanges at $50,000.