The action follows this year’s arrests of many well-known Chinese blockchain executives.
Chinese authorities are focusing more on the Web3 industry as the threat of personal identity theft and cybercrime increases. Chinese law enforcement is preparing to face new cyber dangers head-on in the face of a changing digital environment.
Unveiling Vigilant Measures
On August 10th, Jinfeng Sun, the astute political commissar of the Network Security Bureau, provided insight into the worrying rise in occurrences involving Trojan infections, phishing websites, infiltration tools, and cyberstalkers at a press conference organized by China’s Ministry of Public Security.
![China to Crack Down on Crypto and Deepfake AI image 75](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/08/image-75.png?resize=997%2C526&ssl=1)
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Sun also emphasized the Ministry’s close observation of fresh applications and entities of cutting-edge technologies including ChatGPT, cloud computing, blockchain, and deepfake AI.
The Ministry is prepared to take decisive action against these advanced cyber techniques because of its steadfast commitment to protecting digital frontiers. Sun said that 515 people have been detained as a result of 79 incidents of deepfake AI-related fraud. The root of this troubling tendency was the use of digital face swaps for impersonation.
Related: China Tightens Rules on Generative AI Tools to Prevent Harm
Innovative Criminal Ventures
Sun revealed a notorious case in which 21 people were detained on July 18th in connection with a bold 54.8 million USDT money laundering scam. The strategy entailed buying USDT at a discount from Chinese citizens and then selling them for fiat on foreign markets. The offenders stole their clients’ money and used the price discrepancy to amass illegal profits.
In spite of strict capital controls, China is steadfast in its efforts to stop illegal financial activity. However, this endeavor has also come under investigation due to claims of corruption and abuse of enforcement tools in the crypto industry.
Chain-to-chain protocol Recently, Multichain experienced turmoil as a result of Zhaojun He, its CEO, being detained by law enforcement, which left the project in a failed state. Money belonging to Multichain’s creators and users was then transferred to privacy and stablecoins, raising concerns about the nuances of the enforcement process.
The intricate interactions between innovation, enforcement, and security continue to influence the future course of the Web3 landscape as China strengthens its hold on the digital sphere.
Related: AI Deepfakes Pose Growing Threat to Identity Checks on Crypto Exchanges