Recently, the police in Hunan Province announced that they have successfully cracked down on a cross-border telecommunication fraud case involving cryptocurrency. According to official information, in this case, criminals not only provided communication tools to overseas fraud gangs but also illegally transferred funds through virtual currencies, totaling over 4 million yuan. The core figure of the criminal gang, Xia Mou, was found to have a large number of cryptocurrency transaction records used for settling fraud proceeds in his Ouyi wallet, amounting to nearly 10 million yuan. Gang members mainly conducted transactions using virtual currencies such as USDT to evade traditional financial regulatory measures. This operation not only revealed the potential role of cryptocurrencies in criminal activities but also provided new clues and methods for combating such transnational crimes.