The trial of prominent over-the-counter (OTC) crypto trader and company founder Zhao Dong has started in the Chinese city of Hangzhou.
- Zhao Dong is charged with "assisting internet criminal activities" according to a livestream of the trial Wednesday, as reported by The Block.
- This charge is defined as providing someone known to be committing an internet-based crime with the tools to do so. These include internet access, network storage, telecommunication or payment settlements.
- Zhao and his team are accused of being a transactional counterparty for a money-laundering scheme called "Day Day Up."
- If found guilty, Zhao could be sentenced to up to three years in jail. He has already been in jail for almost a year.
- The case has attracted a great deal of attention given Zhao's status as one of the most prominent figures in the Chinese crypto industry, per the report.
- He ran one of the country's largest OTC desks and founding crypto lending startup RenrenBit.