The police reveal a new scam method, where gold cash-out combined with virtual currency circulation creates a money laundering cycle.

ChainCatcher Message, police remind that near the year-end peak of gold consumption, a new type of scam involving “offline cash withdrawal + online fraud” has emerged. Victims purchase gold at jewelry stores and mail it to a designated location. Then, scammers dispatch disguised “runners” to pick up the package from couriers. Multiple “runners” relay the gold to the final person who takes it to a pawn shop to sell, then delivers the cash to the scammers’ designated location. Some scammers also instruct “runners” to find cryptocurrency traders to exchange the gold for virtual currency, which is then credited to a designated account. Using blockchain technology, the virtual currency is circulated and used worldwide. Once successful, scammers achieve their goal of stealing the gold and laundering money.