The top donor is no ordinary person—live streaming tips used for money laundering.

[4] Compiled from: Red Star News
 
Case review
In March of this year, Jiangxi police discovered that a media company had connected several hundred broadband lines. Upon investigation, it was found that the company's main business was gifting virtual items to streamers, with a monthly financial turnover reaching tens of millions of yuan. Through further investigation, the police found that the company's head, Mao, had set up a "money laundering" platform. Ostensibly engaged in buying and selling virtual currency for live streaming platforms, it was actually helping overseas criminals launder money. Currently, the police have frozen 1,800 accounts on the money laundering platform and seized platform recharge coins worth 4.5 million yuan. The case involves nearly 1 billion yuan, and Mao, Sun, and others have been arrested and are awaiting prosecution.

 
 

The "top spender" who lavishly donates in live-streaming rooms turns out not to be a so-called tycoon, but a money-laundering criminal gang—a phenomenon that serves as a warning. Many people may not be familiar with money laundering, which refers to the act of concealing, disguising, or converting illicit income obtained through crime or other illegal means to make it appear legitimate. Money laundering facilitates the hiding and transfer of illegal gains for criminals, fueling more severe and larger-scale criminal activities. China's Anti-Money Laundering Law clearly stipulates that any individual or entity violating relevant regulations will face administrative penalties such as fines, and serious cases will result in criminal liability.
 
In this case, compared to traditional money laundering methods, the money laundering group introduced some "innovations." They pre-arranged with live streaming companies and individual streamers to pose as fans in the live rooms, using purchased virtual coins from the live streaming platform to give tips. Afterward, the live streaming companies and individual streamers returned approximately 85% of the tip money to the money laundering group. The group then returned 75% of the "cleaned" money to the overseas criminal organization, keeping a 10% margin for themselves.
 
It appears to be a "triple-win" game: live streaming companies and individual streamers gain popularity and high tips, overseas criminal groups achieve the goal of "legalizing" illegal income, and money laundering groups earn high commissions. According to police investigation, within just one year, Sun made nearly 10 million yuan, and Mao made over 5 million yuan.
 
 
"Criminal Law of the People's Republic of China"
Article 191 [Crime of Money Laundering]
Whoever, for the purpose of concealing or disguising the source and nature of proceeds obtained from drug-related crimes, organized crimes of a mafia nature, terrorist activities, smuggling crimes, crimes of embezzlement or bribery, crimes of disrupting financial management order, or crimes of financial fraud, and the profits derived therefrom, commits any of the following acts shall be subject to confiscation of the proceeds and profits from the aforementioned crimes, and shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and/or a fine; if the circumstances are serious, the sentence shall be fixed-term imprisonment of not less than five years but not more than ten years, and a fine:
(1) Providing a fund account;
(2) Converting property into cash, financial instruments, or securities;
(3) Transferring funds through transfer or other payment settlement methods;
(4) Cross-border transfer of assets;
(5) Using other methods to conceal or disguise the source and nature of criminal proceeds and their gains.
If a unit commits the crime in the preceding paragraph, the unit shall be fined, and the directly responsible supervisors and other directly responsible personnel shall be punished in accordance with the provisions of the preceding paragraph.
 
 
[1] The author's perspective
Money laundering is not an unfamiliar term to ordinary people, but its combination with the recent trend of live-stream tipping has caught many off guard. This shows that criminal methods are gradually diversifying, which significantly increases the difficulty for relevant authorities in prevention, supervision, and investigation. Moreover, it also reveals numerous loopholes in live-streaming platforms. Currently, live-streaming platforms do not scrutinize user recharge accounts, only focusing on collecting money without questioning its source, providing opportunities for criminals. Even more despicable is that some live-streaming companies, in pursuit of high profits, knowingly collude with criminal groups despite being aware of money laundering, gradually forming the gray industry chain seen in this case.
 
Thus, it is evident that platforms must strengthen their awareness of prevention and improve their review systems, especially for large-value recharge accounts. Once problems are detected, they should immediately report to relevant authorities and, if necessary, provide account information, and must not allow such situations to develop unchecked.