Chinese crypto enforcement leads to $20 million Bitcoin laundering bust
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Authorities in Beijing’s Haidian District have reportedly uncovered a Bitcoin laundering operation involving approximately 140 million yuan (around $20 million) allegedly stolen by employees of Kuaishou, a leading Chinese short-form video platform.
The investigation revealed that several Kuaishou employees conspired with external parties to embezzle company funds for business development incentives. Under the platform’s subsidy policies, these incentives were designed to reward operators and service providers.
However, one employee in a position of authority manipulated the process for personal gain.
How the Bitcoin scam unfolded
According to the report, the employee, identified by local media as Feng, was responsible for approving new participants and formulating incentive policies.
During the rollout of a new bonus program, Feng created policy gaps and leaked internal data to outside collaborators. These partners then submitted falsified applications that appeared to meet eligibility requirements, allowing them to fraudulently claim reward funds.
The conspirators set up shell companies to receive the stolen funds and conceal the theft. They then transferred the money through eight offshore crypto exchanges, converting it into Bitcoin in multiple batches.
The group also used crypto mixing services to obscure the origin and destination of the assets, making the flow harder to trace.
After converting the Bitcoin into Chinese yuan through underground channels, the funds ended up in accounts controlled by Feng and the accomplices.
Despite this significant laundering process, law enforcement agencies were eventually able to track and seize more than 90 BTC tied to the scheme.
The authorities also prosecuted the individuals involved, handing out prison sentences ranging from six months to 14 years for financial misconduct and embezzlement.
This case highlights China’s firm approach toward cryptocurrency-related crimes. Although the country banned crypto trading in 2017 and declared all digital asset transactions illegal in 2021, authorities remain active in policing the space.
Notably, China still holds a significant amount of Bitcoin, over 190,000 BTC, seized during past investigations into illicit crypto activities
The post Chinese crypto enforcement leads to $20 million Bitcoin laundering bust appeared first on CryptoSlate.
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Chinese crypto enforcement leads to $20 million Bitcoin laundering bust
Share:
Authorities in Beijing’s Haidian District have reportedly uncovered a Bitcoin laundering operation involving approximately 140 million yuan (around $20 million) allegedly stolen by employees of Kuaishou, a leading Chinese short-form video platform.
The investigation revealed that several Kuaishou employees conspired with external parties to embezzle company funds for business development incentives. Under the platform’s subsidy policies, these incentives were designed to reward operators and service providers.
However, one employee in a position of authority manipulated the process for personal gain.
How the Bitcoin scam unfolded
According to the report, the employee, identified by local media as Feng, was responsible for approving new participants and formulating incentive policies.
During the rollout of a new bonus program, Feng created policy gaps and leaked internal data to outside collaborators. These partners then submitted falsified applications that appeared to meet eligibility requirements, allowing them to fraudulently claim reward funds.
The conspirators set up shell companies to receive the stolen funds and conceal the theft. They then transferred the money through eight offshore crypto exchanges, converting it into Bitcoin in multiple batches.
The group also used crypto mixing services to obscure the origin and destination of the assets, making the flow harder to trace.
After converting the Bitcoin into Chinese yuan through underground channels, the funds ended up in accounts controlled by Feng and the accomplices.
Despite this significant laundering process, law enforcement agencies were eventually able to track and seize more than 90 BTC tied to the scheme.
The authorities also prosecuted the individuals involved, handing out prison sentences ranging from six months to 14 years for financial misconduct and embezzlement.
This case highlights China’s firm approach toward cryptocurrency-related crimes. Although the country banned crypto trading in 2017 and declared all digital asset transactions illegal in 2021, authorities remain active in policing the space.
Notably, China still holds a significant amount of Bitcoin, over 190,000 BTC, seized during past investigations into illicit crypto activities
The post Chinese crypto enforcement leads to $20 million Bitcoin laundering bust appeared first on CryptoSlate.
In This News
Coins
Funds
Share:
In This News
Coins
Funds
Share:
Read More
Gold reclaims $5,000, silver surges 6% as experts say bullish momentum intact