Shanghai Police Crack Down on Web3 Payment Platform for Illegal Financial Activities

Shanghai police have arrested nine suspects involved in a Web3 payment platform that facilitated illegal cross-border currency exchange and virtual credit card services. The platform allowed users to deposit USDT, exchange it for fiat currencies, and settle payments via virtual cards. Authorities noted that the platform operated as an unlicensed financial entity, performing unauthorized currency conversion and cross-border settlement, which violates strict regulations against virtual currency-related financial activities in China.