(Yicai Global) May 24 -- Shanghai police have solved China's first case of money laundering by offering tips to livestreamers in a case involving nearly CNY100 million (USD14.2 million), Legal Daily reported on May 17.

Some 21 people have been arrested after police stumbled across a gang suspected of diverting illegally raised funds to livestreamers when probing a case of fraud last June. The offenders would use hard cash to buy virtual coins that were then distributed to live sales hosts as a token of appreciation. The donations were later divvyed up between the platforms, the livestreamers and their agents.

One such live sales host surnamed Li solicited tips from the suspected fraudsters, earning income from his platform as well as commissions from the money launderers, between June 2019 and July 2020, according to the results of the investigation.

Other suspects involved in phone scams and online gambling cases also laundered their money by sending tips to Li after October 2020. The cases are still ongoing.

Editor: Kim Taylor