The Public Security Bureau of Panshi City in China reported on an underground crypto platform where virtual currency was used for transactions in Chinese yuan and Korean won. Six suspects have been detained.

Police say they have seized more than 2 billion yuan (about $300 million) in physical and digital assets.

The investigation began after bankers reported to police that suspiciously large sums of money were being passed through the suspects' private accounts on an all-too-frequent basis. Such a scheme is typical for operations related to underground banking, law enforcement officers decided. The investigation found that the participants in the transactions organized a scheme to illegally move money between South Korea and China, where digital assets were used as a cryptocurrency equivalent in the over-the-counter market.

“The suspects were engaged in illegal business activities and exchange business. They served the interests of Korean purchasing agents, cross-border e-commerce operators, as well as Korean import and export companies,” the case file says.

The day before, the South China Morning Post reported that Chinese officials who receive salaries in digital yuan prefer to convert e-CNY into cash and rarely use digital currency for everyday purposes.