China Hands Death Sentence to Crypto Lender for Laundering $7M

A Chinese court has handed down a death sentence to Li Moubo for laundering over $7 million in cryptocurrency, highlighting Beijing's strict stance on crypto-facilitated financial crime.

The case involved Li converting more than 48-million-yuan (approximately $7.04 million) worth of drug proceeds through virtual currencies, with the Supreme People’s Procuratorate of China emphasizing that cryptocurrencies are an integral part of criminal activity.

This decision is part of a larger pattern in law enforcement in China, which has reflected a stricter approach to crypto laws and regulations since 2021 when domestic cryptocurrency trading and mining were banned. The SPP has charged over 1,200 persons with drug-related money laundering between January 2025 and May 2026.

The case demonstrates the severity of penalties for crypto-facilitated money laundering in China, contrasting with Western jurisdictions where sentences are typically less severe.