Security News > 2022 > September > DoJ charges pair over China-linked attempt to build semi-autonomous crypto haven on nuked Pacific atoll

It's said that the pair promoted the idea at a conference in 2018 and a few news outlets picked up on that plan and suggested Rongelap could become "The new Hong Kong.".

In a May 2021 publication [PDF] the IMF noted the proposal to create a digital economic zone on Rongelap and characterized it as "Envisioned to focus on virtual means of exchange, including virtual assets."

Which may be why, according to the DoJ, Yan and Zhou allegedly bribed government officials and legislators to advance their scheme to create a digital economic zone.

The DoJ alleges the pair sourced the funds for illegal payments to legislators and officials "From China and elsewhere".

The payments are alleged to have worked as in 2020 the Marshall Islands government passed a bill to allow the establishment of the Rongelap Atoll Special Administrative Region, although nothing seems to have come of the plan since.

News of the claims comes as China increasingly pushes into the Pacific with offers to connect and secure small island nations.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/09/08/doj_rongelap_atoll_crypto_charges/