The crackdown on crypto-related fraud is tightening, and one of Beijing’s most prominent OTC traders is now in the spotlight. Song Shijie scam investigations have led to the freezing of assets worth millions across the UK and the US. Reports confirm that regulators moved against his properties, bank accounts, and business holdings, following allegations of large-scale fraud tied to crypto transactions.
This high-profile case signals how global authorities are increasingly cooperating to pursue cross-border financial crimes in the digital asset sector. For the once-powerful OTC boss, it’s a dramatic fall from grace.
The Song Shijie scam and its global reach
Song Shijie was widely known as a leading over-the-counter (OTC) trader in Beijing, operating as a key middleman for large crypto transactions. OTC desks often cater to high-net-worth individuals, institutions, and entities looking to trade digital assets outside of centralized exchanges.
But authorities allege that Song used his influence and trading networks to orchestrate a sophisticated scam. Victims claim he manipulated transactions, misrepresented liquidity, and siphoned funds through shell companies registered in multiple jurisdictions.
Investigators say Song’s strategy included:
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Fake settlement promises: assuring clients of guaranteed conversions between crypto and fiat that never materialized.
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Layered transfers: moving funds through complex chains of wallets and offshore accounts to obscure their origin.
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Asset laundering: redirecting stolen proceeds into real estate and luxury investments across the UK and US.
The alleged Song Shijie scam didn’t stop at Beijing. Evidence shows links to overseas investment networks, with millions traced to high-value properties in London and financial accounts in New York. Authorities in both countries have since frozen the assets pending court rulings.
Impact on OTC trading and investor confidence
The collapse of Song’s empire is being closely watched across Asia’s crypto markets. OTC trading has long been a gray area—serving as an entry point for institutions while often operating with less oversight than centralized exchanges.
By seizing Song’s assets, regulators are sending a strong message: fraud in OTC markets will not escape international scrutiny.
Analysts warn that the scandal could:
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Reduce trust in OTC desks, where deals rely heavily on personal reputation and informal agreements.
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Drive more institutions toward regulated exchanges for large-volume trades.
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Trigger further investigations into other OTC players operating without transparency.
For retail investors, the news reinforces the risks of engaging with unregulated crypto intermediaries. While Song projected credibility as a market leader, even seasoned professionals were caught in the alleged fraud.
Global regulators are also using the case as a blueprint. Cooperation between Chinese, British, and American authorities illustrates a new era of cross-border enforcement in crypto crime. Similar strategies were used in past cases against money laundering and ransomware networks, but this is one of the most significant examples involving a high-profile OTC trader.
Lessons for the crypto industry
The downfall of Song Shijie scam operations is a reminder that reputation alone is not protection. Investors and institutions are urged to:
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Conduct due diligence before engaging with OTC desks.
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Demand transparency and verifiable settlement methods.
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Prefer platforms subject to regulatory oversight and auditing.
Meanwhile, the industry is once again under pressure to clean up. The growth of crypto adoption depends not just on innovation, but on building systems that reduce the room for fraud.
The case of Song Shijie shows how quickly power in crypto can crumble when trust is broken. From being a central figure in Beijing’s OTC markets to losing properties in London and assets in New York, his story marks another cautionary tale in the global crypto landscape.
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