China’s Supreme People’s Procuratorate has sentenced a defendant identified as Li Mobo to death for laundering over 48 million yuan (approximately $7.03–7.04 million) in cryptocurrency that was traced to a large-scale cross‑border drug smuggling operation, according to state‑run Xinhua News Agency. The Chongqing‑based case was handled under direct supervision of the national prosecutorial authority.
The sentence marks a sharp escalation in China’s campaign against drug‑related financial crimes. Deputy Chief Procurator Miao Shengming stated at a June 25 press conference that prosecutors have intensified investigations into both “self money laundering” and “third‑party money laundering” tied to narcotics. Between January 2025 and May 2026, more than 1,200 individuals nationwide were indicted on money laundering charges, as authorities aggressively pursued the recovery of illicit digital assets.
The criminal network converted cash and domestic bank transfers into cryptocurrency, moving the funds across borders while evading traditional banking oversight and capital controls. The death penalty was imposed under China’s combined punishment framework, which allows multiple convictions—including drug smuggling, trafficking, transportation and money laundering—to be sentenced together. The punishment was not based solely on the laundering offense but on the totality of criminal activity.
Earlier in the week, the People’s Bank of China (PBOC) reiterated that virtual currency money laundering remains one of its principal enforcement priorities under the country’s anti‑money laundering strategy. The central bank noted that Chinese courts delivered more than 2,000 judgments under Article 191 of the Criminal Law during 2025, while investigators have adopted a dual‑investigation approach targeting both the underlying crimes and the laundering networks. Regulators continue to strengthen enforcement cooperation, intelligence sharing and asset recovery in cross‑border financial crime cases.
