The Shayang County People's Court in Hubei province ruled in October 2022 to confiscate part of the frozen virtual currency in a cross-border online gambling case, according to Xinhua. The report, published in July 2023, described the ruling as the country's first case in which a court ordered the confiscation of virtual currency1.
The case began with a report to police. On July 28, 2021, the Jishan police station in Shayang County, Hubei, received a report from a resident surnamed Xiong, who said he had lost more than 100,000 yuan gambling on a mobile card and board game app1. Investigators said the operation's turnover reached more than 400 billion yuan, involved more than 50,000 people, ran on servers set up overseas, and used virtual currency to launder funds because it is harder to trace1.
Police carried out arrests across several provinces between December 2021 and April 2022, breaking up 14 related gangs and detaining more than 130 suspects. Officers seized more than 300 computers and mobile phones, 200 SIM cards and bank cards, and 18 note-counting machines and POS terminals1. The task force froze virtual currency accounts, which Xinhua said prevented more than 10亿余元 worth of virtual currency from reaching the suspect group1.
"In October 2022, the Shayang County People's Court issued its ruling and lawfully confiscated part of the frozen virtual currency, making the case the nation's first in which a court ordered the confiscation of virtual currency."
Three main suspects who had remained overseas were caught at the end of 2022 and repatriated, and in June 2023 the main suspect, surnamed Qiu, and others were transferred by the Shayang County People's Procuratorate to the Shayang County People's Court, where the case entered the trial stage1.
| Item | Figure |
|---|---|
| Turnover | More than 4000多亿元 |
| People involved | More than 5万多人 |
| Gangs broken up | 14 |
| Suspects detained | More than 130 |
| Virtual currency kept from suspects | More than 10亿余元 |
What it means for players
China bans gambling, and the case shows enforcement reaches the payment layer, not just the operators. Players on offshore apps that settle bets in virtual currency can have those accounts frozen, and a court can order the currency confiscated. The Xiong report also shows how a single player's complaint can start a case of this size. For locals, expats and visitors in China, the practical exposure is the money trail: accounts, cards and wallets used to move gambling funds are what investigators traced here. The China guide sets out the legal position, and the regional gambling law guide covers how China's rules compare with other jurisdictions in Asia.
What happens next
The main suspect, Qiu, and others were transferred to the Shayang County People's Court in June 2023 and the case entered the trial stage1. No outcome of that trial has been reported.
Sources1 sources
- 涉案流水4000余亿元跨境网络赌博大案何以破获-新华网, news.cn
