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China has taken another step into blockchain-based finance, but in a way that avoids direct involvement with cryptocurrencies.

A state-owned firm in Shenzhen has launched a digital bond offering on Ethereum, showing how the country is selectively embracing new technology while keeping its hard stance on crypto trading in place.

First State-Backed RWA Bond On Ethereum

According to reports, Futian Investment Holding completed a 500 million yuan issuance of offshore bonds on August 29.

The bonds, equal to nearly $70 million, were rolled out in Hong Kong and listed on the Ethereum blockchain. They carry a 2.62% annual interest rate and will expire in two years.

The company described the deal as part of an effort to expand its funding sources while also responding to the growing use of real-world assets and tokenization in global markets.

It also pointed to Hong Kong’s supportive policies as a factor in the decision, saying the bond aligns with the district’s push to attract digital asset innovation.

#UZX BREAKING NEWS #RWA

Futian Investment Holding Announces Issuance of the World’s First Public RWA Digital Bond on a Public Blockchain pic.twitter.com/E2sGIJZdwl

— UZX Official (@UZX_Official) September 2, 2025

Crypto Still Off-Limits At Home

The move does not mean that China has softened its ban on crypto or Ethereum. Back in 2021, Beijing imposed a full ban on crypto mining and trading.

Officials at the time said the measures were needed to control energy use and to guard against risks that might destabilize the country’s financial system.

BTCUSD trading at $110,388 on the 24-hour chart: TradingView

That ban remains in effect today. Ordinary citizens and companies in mainland China are still blocked from using or trading cryptocurrencies.

What is allowed, however, are limited experiments like tokenized bonds that stay within the bounds of traditional finance.

Hong Kong As A Testing Ground

By routing the deal through Hong Kong, Beijing can keep its domestic ban intact while still signaling that it wants exposure to blockchain-based finance.

The bustling metro has been given more room to try out digital asset projects, and this latest bond fits into that role.

China’s strategy delineates a clear split: blockchain as a tool for finance is embraced in regulated manifestations, while crypto as an unfettered market asset is still off-limits.

Stablecoins, particularly dollar-denominated stablecoins, have also attracted scrutiny in Beijing, with officials concerned that they can undermine other currencies based around the world.

Reports suggest this RWA bond may be the first in a series of state-backed blockchain and Ethereum financial products tied to Hong Kong.

For now, the issuance shows China’s intent to cautiously explore blockchain without reopening the door to Bitcoin, stablecoins, or wider crypto adoption.

Featured image from Agoda, chart from TradingView 

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Crypto Journalist

Anas Hassan

Crypto Journalist

Anas Hassan

About Author

Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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August 29, 2025

US financial institutions processed $312 billion in suspicious transactions linked to Chinese money laundering networks between January 2020 and December 2024, according to a new FinCEN analysis of 137,153 Bank Secrecy Act reports.

These surprisingly unexpected big figures emerge as crypto exchanges face intensified regulatory scrutiny for money laundering, despite traditional banking systems handling vastly larger volumes of illicit funds.

Chinese money laundering networks have established sophisticated partnerships with Mexico-based drug cartels, exploiting currency restrictions in both countries.

Mexican currency laws prevent large dollar deposits in local banks, while China’s currency controls limit overseas transfers by its citizens. This regulatory gap allows cartels to sell illicit dollars to Chinese nationals seeking to circumvent Beijing’s capital controls.

The networks extend beyond drug trafficking into human trafficking, healthcare fraud, and real estate purchases worth $53.7 billion in suspicious activity.

FinCEN identified 1,675 reports involving human trafficking and 43 reports covering $766 million in suspicious adult day care center activity in New York alone.

Banks Handle Bulk of Criminal Money While Crypto Faces Heat

Banks accounted for $246 billion of the total suspicious transactions, while money service businesses handled $42 billion and securities firms processed $23 billion.

The average annual flow through US banking systems reached $62 billion from Chinese money laundering operations alone.

Historical cases reveal systematic banking vulnerabilities to criminal exploitation.

Wachovia Bank laundered $350 billion for Mexican drug cartels between 2007 and 2010, receiving only a $160 million penalty despite the massive scale.

Danske Bank processed $228 billion in suspicious transactions from Russia between 2007 and 2015, ignoring internal warnings throughout the period.

Similarly, HSBC paid $1.9 billion in 2012 for allowing drug cartels to transfer hundreds of millions through accounts, with criminals using specially designed cash deposit boxes that fit perfectly into bank slots.

TD Bank agreed to pay over $3 billion after prosecutors found the institution had been used to launder more than $470 million through Chinese networks in New York and New Jersey.

In fact, dating back to 2021, the 1MDB scandal involved over $1 billion stolen through global banking networks, with funds used to purchase luxury real estate, yachts, and artwork across major cities.

Bank of Credit and Commerce International laundered billions for drug cartels and corrupt governments before its 1991 closure forced stricter international banking regulations.

Criminal organizations recruit bank employees as complicit insiders and use counterfeit Chinese passports to facilitate account openings.

Money mules often report occupations as “student,” “housewife,” or “retired” during onboarding to explain large transaction volumes that are inconsistent with their stated professions.

Regulators Target Crypto Despite Minimal Illicit Activity Share

Cryptocurrency transactions represent ‘less than 1%’ of total money laundering activity globally, according to TRM Labs.

In fact, Chainalysis data shows illicit crypto volumes totaled approximately $189 billion over five years, compared to over $2 trillion laundered annually through traditional financial systems worldwide.

Despite this disparity, regulators are intensifying their enforcement actions against crypto.

Most recently, Binance Australia was required to appoint an external auditor within 28 days after AUSTRAC identified “serious concerns” with its anti-money laundering controls.

French authorities have also launched investigations into Binance over alleged violations, while European regulators are considering penalties against OKX following $100 million in allegedly laundered funds.

Australian enforcement expanded through systematic compliance reviews, with AUSTRAC targeting 13 remittance providers while investigating 50 additional platforms.

The agency cancelled or refused renewals for nine providers that failed to comply with their obligations, contrasting sharply with the limited penalties imposed on the banking sector despite vastly larger suspicious transaction volumes.

Senator Elizabeth Warren continues to demand tougher crypto regulations, stating, “Bad actors are increasingly turning to cryptocurrency to enable money laundering.”

However, FinCEN data reveals that Chinese money laundering networks primarily operate through traditional banking channels rather than digital assets.

Blockchain analytics firm Chainalysis reported illicit crypto transactions reached $51.3 billion in 2024, an 11.3% increase, but still representing a fraction of the $312 billion in suspicious banking transactions identified during the same period.

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American Bitcoin Corp., a mining company linked to US President Donald Trump’s family, has completed one of the largest hardware purchases in the crypto sector this year.

Reports have disclosed that the firm paid around $314 million for 16,290 Antminer U3S21EXPH units from Chinese mining giant Bitmain.

Massive Purchase Ahead Of Tariffs

The order locks in a huge amount of high-performance ASIC machines capable of producing about 14.02 exahashes per second in combined hashing power.

This level of output could boost American Bitcoin’s share of global mining capacity. The company originally had an option for as many as 17,280 units but decided to move fast to avoid price hikes from US tariffs on Chinese-made mining gear.

Industry trackers say orders of this scale have been rare for American miners in 2025. While the firm has not revealed where the rigs will be deployed, sources familiar with the matter said they plan to distribute them across multiple large sites to reduce operational risks.

Bitmain’s Antminers at Hut 8’s Vega facility in Texas. Source: The Miner Mag.

Political And Trade Pressures

The deal came just before the Trump administration began enforcing tariffs on imported Chinese mining hardware. The policy covers a wide range of technology goods, including ASIC miners, and is aimed at pushing production back to the US. However, critics say these tariffs could raise operating costs for domestic miners.

Jaran Mellerud, CEO of BTC mining firm Hashlabs, warned that higher costs could cut into profitability. He warned that steep price increases could raise mining costs in the US to a point where demand collapses, blaming regulators he viewed as ineffective.

Bitmain Eyes US Expansion

Bitmain, which controls about 80% of the global ASIC market according to a University of Cambridge study, is adjusting its operations in response to the tariffs.

The company plans to open its first US-based ASIC production site in early 2026. By the end of this year, it also expects to set up a new headquarters in Texas or Florida.

The aim is to make its products accessible to US customers at reasonable prices and escape import taxes by manufacturing locally.

Industry experts opine that this action would prompt other industry leaders such as MicroBT and Canaan to explore the possibility of diverting some production capacity to North America.

Although the complete implications of the tariffs on the mining supply chain are still uncertain, this recent acquisition indicates the depth of stakes for manufacturers and operators alike.

For American Bitcoin, the $314 million order indicates faith in the profitability of the industry in spite of fluctuating Bitcoin prices and increased competition.

For Bitmain, it’s an indication that being able to bend with political and economic gusts will be the ticket to maintaining its dominance of the US market.

Featured image from Pexels, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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August 3, 2025

A massive Bitcoin theft from 2020 has surfaced nearly four years later, and it’s now being called the largest crypto heist ever uncovered.

On Saturday, blockchain analytics firm Arkham Intelligence reported that 127,426 BTC, valued at around $3.5 billion at the time and nearly $14.5 billion today, was stolen from Chinese mining pool LuBian in December 2020.

LuBian rose quickly in early 2020, becoming the sixth-largest mining pool on the Bitcoin network by mid-year.

Its website promoted it as “the safest high yielding mining pool in the world.”

LuBian Vanished in 2021, Sparking Speculation of Shutdown

By February 2021, LuBian had disappeared without explanation, fueling speculation that it was either shut down by authorities or quietly converted into a private pool.

Arkham’s investigation points to a more dramatic exit: a hack that drained the pool’s holdings.

“They appear to have been first hacked on December 28th, 2020 for over 90% of their BTC,” Arkham wrote.

The following day, attackers siphoned off another $6 million in BTC and USDT from a LuBian-linked address on the Bitcoin Omni layer.

The firm believes the Bitcoin theft stemmed from vulnerabilities in LuBian’s private key generation system, which may have allowed brute-force attacks.

While 11,886 BTC, worth roughly $1.35 billion, remains untouched in LuBian’s wallet, none of the stolen coins have moved since July 2024.

Interestingly, LuBian attempted to communicate with the attacker using Bitcoin’s OP_RETURN feature.

In two transactions, the team wrote: “To the whitehat who is saving our asset, you can contact us… to discuss the return of asset and your reward.”

The message included an email address, but it’s unclear if the hacker ever replied.

While the Mt. Gox collapse involved more BTC, the LuBian breach is the largest confirmed crypto theft by value at the time of the incident.

Bitcoin Hacks, Theft Cost Investors $2.2B in H1 2025: CertiK

Crypto investors lost over $2.2 billion to hacks, scams, and breaches in the first half of 2025, driven largely by wallet compromises and phishing attacks, according to CertiK’s latest security report.

Wallet breaches alone caused $1.7 billion in losses across just 34 incidents, while phishing scams accounted for over $410 million across 132 attacks.

Two major incidents, including Bybit’s $1.5 billion hack in February and Cetus Protocol’s $225 million exploit in May, skewed the year’s losses upward, together accounting for nearly $1.78 billion.

Without these, losses align more closely with previous years at around $690 million.

Ethereum remained the primary target, suffering over $1.6 billion in losses across 175 events.

The report also pointed to rising sophistication of phishing schemes and ongoing risks from social engineering, urging crypto users to verify links, avoid suspicious sites, and use hardware wallets.

Chinese investors are reportedly hawking gold and appear to be pivoting into local equities.

New data from Bloomberg indicates China’s four major onshore gold-backed exchange-traded funds (ETFs) witnessed combined net outflows of about 3.2 billion yuan (worth nearly $450 million) so far this month.

Steve Zhou, an analyst at Huaan Fund Management Co., tells Bloomberg that local Chinese retail investors are taking profits in gold and chasing upside in local equities.

The CSI 300 Index, which aims to replicate the performance of the top 300 stocks traded on the Shanghai Stock Exchange and the Shenzhen Stock Exchange, is up nearly 5.5% in the past month.

Conversely, however, the Chinese government has reportedly been covertly buying much more gold than what public numbers disclose.

Joseph Cavatoni, market strategist at the World Gold Council, tells MarketWatch that there is debate over whether the People’s Bank of China’s (PBOC) reported purchases fully capture its activity.

Jan Nieuwenhuijs, an analyst at Money Metals, says the Chinese central bank’s gold holdings are likely more than double what is officially reported.

Nieuwenhuijs claims the PBOC held 5,065 metric tons of gold in its reserve at the end of 2024, compared to its reported holdings of 2,280 metric tons.

The latest data from the World Gold Council indicates the Chinese government holds 2,296 tons of gold.

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Authorities in Beijing’s Haidian District have reportedly uncovered a Bitcoin laundering operation involving approximately 140 million yuan (around $20 million) allegedly stolen by employees of Kuaishou, a leading Chinese short-form video platform.

The investigation revealed that several Kuaishou employees conspired with external parties to embezzle company funds for business development incentives. Under the platform’s subsidy policies, these incentives were designed to reward operators and service providers.

However, one employee in a position of authority manipulated the process for personal gain.

How the Bitcoin scam unfolded

According to the report, the employee, identified by local media as Feng, was responsible for approving new participants and formulating incentive policies.

During the rollout of a new bonus program, Feng created policy gaps and leaked internal data to outside collaborators. These partners then submitted falsified applications that appeared to meet eligibility requirements, allowing them to fraudulently claim reward funds.

The conspirators set up shell companies to receive the stolen funds and conceal the theft. They then transferred the money through eight offshore crypto exchanges, converting it into Bitcoin in multiple batches.

The group also used crypto mixing services to obscure the origin and destination of the assets, making the flow harder to trace.

After converting the Bitcoin into Chinese yuan through underground channels, the funds ended up in accounts controlled by Feng and the accomplices.

Despite this significant laundering process, law enforcement agencies were eventually able to track and seize more than 90 BTC tied to the scheme.

The authorities also prosecuted the individuals involved, handing out prison sentences ranging from six months to 14 years for financial misconduct and embezzlement.

This case highlights China’s firm approach toward cryptocurrency-related crimes. Although the country banned crypto trading in 2017 and declared all digital asset transactions illegal in 2021, authorities remain active in policing the space.

Notably, China still holds a significant amount of Bitcoin, over 190,000 BTC, seized during past investigations into illicit crypto activities

Chinese creditors affected by FTX’s latest legal maneuver are ramping up efforts to challenge the bankrupt exchange’s request to delay payouts to users in 49 jurisdictions with restrictive or uncertain crypto laws.

The group is turning to US courts and regulators, raising concerns about fairness, transparency, and procedural integrity.

Speaking with CryptoSlate, a Chinese creditor named Will has retained a US attorney and is part of a growing community of over 500 Chinese creditors organizing their response against FTX’s decision.

He revealed that dozens of affected users have already sent formal objections to the bankruptcy court. “So far, 35 people from our group have mailed letters to the judge,” he said on X.

He told CryptoSlate:

“I’m working closely with a growing group of Chinese creditors—now over 500 members—many of whom are taking coordinated actions such as writing letters to the judge and US Trustee, and exploring group legal representation.”

According to him, their frustration centers around a recent FTX motion asking the court for permission to hold back $470 million in distributions to creditors in countries with ambiguous crypto rules. China accounts for the majority of this amount, with $380 million in claims, or roughly 82% of the restricted total.

Will, however, stressed that:

“$470 million is not just a cold number — behind it are countless families already hurt once. A second wound is unfolding. We can’t stay silent.”

Concerns over fairness

Speaking on behalf of the Chinese creditors, Will argues that FTX’s move contradicts earlier assurances.

He told CryptoSlate:

“We were told clearly: as long as we submitted our claims and voted in favor of the plan, we would be entitled to receive our distributions like everyone else. Based on that understanding, we cooperated, our claims were verified, and we supported the reorganization plan in good faith.”

He argues that this reversal erodes trust in the process. FTX’s new legal move could deny them their rightful compensation because of their “nationality or perceived legal uncertainty.”

He said:

“This situation is not only unfair—it’s procedurally questionable. A confirmed plan should not be altered in a way that selectively strips rights from certain creditors after the fact. We believe such changes, especially those targeting a group of people based solely on jurisdiction, deserve close scrutiny from the court.”

FTX claims it is trying to avoid legal risk by not sending funds to countries where crypto use may be restricted.

However, critics see this as a dangerous precedent that could selectively undermine the rights of verified claimants after a reorganization plan has already been confirmed.

He concluded:

“At the end of the day, this is not just about money—it’s about fairness, credibility, and trust in the system. We are not asking for special treatment; we are asking to be treated equally under the same rules as everyone else. A confirmed distribution process should not be altered at the last stage to selectively exclude those who have already done everything required of them.”

Mentioned in this article

A Chinese national was arrested in Milan, Italy, last week for allegedly being linked to the state-sponsored Silk Typhoon hacking group, which responsible for cyberattacks against American organizations and government agencies.

According to Italian media ANSA, the 33-year-old man, Xu Zewei, was arrested at Milan’s Malpensa Airport on July 3rd after arriving on a flight from China. Italian police arrested the suspect on an international warrant from the U.S. government.

ANSA reports that Xu is accused of being linked to the Chinese state-sponsored Silk Typhoon hacking group, aka Hafnium, which has been responsible for a wide range of cyberespionage attacks against the U.S. and other countries.

In particular, Italian media reports that Xu is linked to the 2020 Silk Typhoon cyberattacks on infectious disease researchers and healthcare organizations, which aimed to steal data on anti-COVID vaccines.

“These actors have been observed attempting to identify and illicitly obtain valuable intellectual property (IP) and public health data related to vaccines, treatments, and testing from networks and personnel affiliated with COVID-19-related research,” read the joint advisory.

The hacking group has also been linked to more recent cyberespionage campaigns, including those on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and the Committee on Foreign Investment.

In March, Microsoft reported that Silk Typhoon had begun targeting remote management tools and cloud services in supply chain attacks to gain access to downstream customers’ networks.

Xu is currently being held in Busto Arsizio prison with the U.S. seeking extradition to face trial in the States.