The Haidian District Procuratorate in Beijing revealed that a former employee of a short video platform, Feng, colluded with external merchants to defraud 140.00 million yuan in subsidies by leaking internal data and making false declarations. The embezzled money was received through shell companies, converted into Bitcoin, and laundered through "mixing" techniques, with some of the funds then transferred back to accounts controlled by him. Feng and six others were sentenced to prison terms ranging from three to fourteen years and six months, along with fines. More than 90 Bitcoins were recovered, and the judgment has taken effect. [People's Daily]

A Beijing court has sentenced seven people over a crypto laundering case involving $20.00 million in stolen funds, raising fresh questions about how China might tighten its stance on digital assets. According to local reports, at the center of the case is a former employee of a video platform based in the Haidian District. Prosecutors allege that the individual abused his control over internal reward programs, leaking company data and rigging application processes to funnel 140 million yuan, roughly $19.30 million, in fake bonuses to a network of fake vendors run by his co-conspirators. Ghost companies were set up to receive the funds, internal controls were bypassed, and paperwork was forged to cover the tracks. The stolen funds were then moved through eight offshore crypto exchanges, converted into Bitcoin ( BTC ) and other digital assets.  To conceal the trail, the perpetrators used coin-mixing services, a common tactic in crypto laundering, before cashing out some of the assets back into yuan and hiding them in private accounts. Investigators managed to crack the flow using digital forensics and recovered over 90 BTC, worth around $11.00 million at current prices. The perpetrators were also convicted of embezzlement, sentenced to prison terms ranging from three to fourteen and a half years. While this incident was a corruption case at its core, the use of crypto for laundering now raises broader questions of potential implications for the local industry. China has long maintained a cautious, often restrictive posture toward digital assets. Trading, mining, and related activities are restricted, following the implementation of a blanket ban in 2021. Just weeks ago, the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities issued a public warning about rising fraud tied to digital assets. Officials highlighted a surge in scams involving yuan-tied tokens, with unlicensed operators using crypto buzzwords to attract investors, launder money, and run illegal fundraising schemes. Despite recent whispers that regulators are reconsidering parts of their hardline stance in response to the growing interest in stablecoins in the region, cases like the $20.00 million scheme risk setting that progress back, potentially prompting stricter rules that turn up pressure on the local industry. Regulators have yet to comment on the crackdown, and it remains to be seen if or how the case will trigger any policy shifts.

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China busts $20.00M BTC laundering ring, will crypto stance worsen?

News on July 28th, a former employee of a short video platform company in Haidian District, Beijing, named Feng, took advantage of his position to collude with external suppliers, exploit loopholes in the reward policy, leak internal data, and illegally embezzle 140.00 million yuan in company rewards. The individuals involved also transferred the stolen funds through methods such as registering shell companies and laundering virtual currency. Feng instructed Tang and Yang to use 8 different overseas virtual currency exchanges to gradually convert the embezzled funds into Bitcoin and other virtual currencies.

In order to completely sever the traceability of the fund flow, Feng's group used a more covert "coin mixing" method, which confuses the cryptocurrency transaction path through technical means to achieve "privacy" protection. Faced with evidence, Feng's group had to surrender over 90 hidden Bitcoins, helping the company recover some losses. In the end, Feng and 6 others were sentenced by the Haidian District People's Court for the crime of embezzlement, receiving prison terms ranging from fourteen years and six months to three years, along with corresponding fines. The judgment is now in effect. [BlockBeats]

Beijing: Details of 140.00 Million RMB Reward Fraud Case on a Short Video Platform Revealed, Involving Money Laundering with Cryptocurrency to Transfer Illicit Funds

On July 28, Feng, a former employee of a short video platform company in Haidian District, Beijing, colluded with external suppliers by taking advantage of his position, illegally obtaining 140.00 million yuan in bonuses from the company by reserving loopholes in the reward policy and leaking internal data. The people involved also transferred the ill-gotten gains by registering shell companies and laundering money through virtual currencies. Among them, Feng instructed Tang and Yang to use 8 different overseas virtual currency trading platforms to convert the huge amount of money defrauded into virtual currencies such as Bitcoin in batches.

In order to completely cut off the traceability chain of the capital flow, the Feng gang adopted a more secretive "mixing currency" method, that is, confusing the cryptocurrency transaction path through technical means to achieve "privacy" protection. Faced with the evidence, the Feng gang had to hand over more than 90 Bitcoin they had hidden, allowing the company to recover some of its losses. In the end, Feng and 6 others were sentenced by the Haidian District People's Court to fixed-term imprisonment ranging from 14 years and six months to three years for the crime of embezzlement, and were fined accordingly. The judgment is now in effect. [BlockBeats]

Details of a 140 million yuan bribery case on a short video platform in Beijing have been revealed, involving the use of cryptocurrencies to launder money and transfer illicit funds.

On July 28, Feng, a former employee of a short video platform company in Haidian District, Beijing, colluded with external suppliers by taking advantage of his position, illegally obtaining 140.00 million yuan in bonuses from the company by reserving loopholes in the reward policy and leaking internal data. The people involved also transferred the ill-gotten gains by registering shell companies and laundering money through virtual currencies. Among them, Feng instructed Tang and Yang to use 8 different overseas virtual currency trading platforms to convert the huge amount of money defrauded into virtual currencies such as Bitcoin in batches.

In order to completely cut off the traceability chain of the flow of funds, the Feng gang adopted a more secretive "mixing currency" method, that is, confusing the cryptocurrency transaction path through technical means to achieve "privacy" protection. Faced with the evidence, the Feng gang had to hand over more than 90 Bitcoin they had hidden, allowing the company to recover some of its losses. In the end, Feng and 6 others were sentenced by the Haidian District People's Court to fixed-term imprisonment ranging from fourteen years and six months to three years for the crime of embezzlement, and were fined accordingly. The judgment is now in effect. [BlockBeats]

Details of a 140 million yuan bribery case on a short video platform in Beijing have been revealed, involving the use of virtual currencies to launder money and transfer illicit funds.

The Haidian District People's Procuratorate of Beijing recently successfully solved a major embezzlement case involving money laundering using Bitcoin. According to reports, the case involved as much as 140.00 million yuan (approximately $20.00 million USD), and the main members of the criminal gang were employees of Kuaishou, a well-known short video platform in China. Investigations revealed that the suspects transferred illegal gains through 8 overseas cryptocurrency exchanges and coin mixing services in an attempt to conceal the flow of funds. After technical tracking, law enforcement agencies successfully recovered 92 Bitcoins (worth approximately $11.70 million USD) and have returned them to the victimized company. The principal offender, Feng, and his 7 accomplices were sentenced to imprisonment ranging from 3 to 14 years for the crime of embezzlement, and were also fined accordingly. [ChainCatcher]

Beijing cracks $20.00M Bitcoin money laundering case, recovers 92 BTC

<p>Feng, a former employee of a short video platform company in Haidian District, Beijing, colluded with external suppliers to illegally obtain 140.00 million yuan in bonuses by exploiting loopholes in incentive policies and leaking internal data. During the transfer of the funds involved, Feng instructed others to use 8 overseas virtual currency trading platforms to convert the funds into virtual assets such as Bitcoin, and concealed the flow of funds through "coin mixing." Ultimately, Feng and 6 others were sentenced to fixed-term imprisonment ranging from three to fourteen years and six months and fined, and the relevant judgments have taken effect. The procuratorate reminds that enterprises should strengthen risk prevention and control in the context of the digital economy. [People's Daily]

Details of the 140.00 million yuan bonus corruption case on the short video platform have been revealed, involving virtual currency money laundering and "mixing" to transfer illicit funds.

July 28 news, according to a recent report by the People's Daily, Feng, a former employee of a short video platform company in Haidian District, Beijing, took advantage of his position to collude with external suppliers inside and outside, and illegally obtained the company's 140.00 million yuan reward by reserving loopholes in the reward policy and leaking internal data. The suspects also transferred the stolen money by registering shell companies and laundering money with virtual currencies. Among them, Feng instructed Tang and Yang to use 8 different overseas virtual currency trading platforms to exchange the huge amount of money defrauded into virtual currencies such as Bitcoin in batches. In order to completely cut off the traceability chain of the flow of funds, Feng's gang adopted a more secretive "mixing currency" method, that is, to confuse the cryptocurrency transaction path through technical means to achieve "privacy" protection. In the end, Feng and 7 others were sentenced to fixed-term imprisonment ranging from three to fourteen years and six months, and fined. The judgment has now come into effect. The procuratorate reminds that with the development of the digital economy, commercial corruption methods are constantly escalating, and companies need to strengthen risk prevention and control. [PANews]

Details revealed of a corruption case involving 140 million yuan in rewards for a short video platform in Beijing: using virtual currency to launder money and other methods to transfer stolen money.

Chinese authorities dismantled a Bitcoin (BTC) laundering operation involving employees of Kuaishou, the country’s second-largest TikTok-style video-sharing platform. China remains one of the most stringent regulatory environments for cryptocurrencies globally. Its near-total ban is driven by concerns over financial stability, capital flight, crime, and environmental impact. Kuaishou Employees Imprisoned for $20 Million Bitcoin Scheme The Haidian District People’s Procuratorate in Beijing reported that company insiders embezzled nearly 140 million yuan (around $20.00 million). Reportedly, they used Bitcoin to conceal and move the funds through a sophisticated network of crypto exchanges and mixers. The case revealed how the group funneled the stolen funds through eight overseas cryptocurrency exchanges, leveraging coin mixing services to obfuscate the transaction trail. Despite their efforts, investigators tracked down the flows and ultimately recovered 92 BTC, worth approximately 89 million yuan ($11.70 million), which was returned to the company. A prosecutor from the Haidian Procuratorate described the case as emblematic of new trends in digital corruption. Feng, the main perpetrator, and seven co-conspirators were convicted of occupational embezzlement. Their sentences ranged from three to fourteen years in prison, along with financial penalties. The verdict, delivered by the Haidian District People’s Court, emphasizes China’s growing capacity to trace digital assets even through layers of anonymizing tools . This case is significant beyond the size of the funds, reflecting a rising trend where commercial corruption is intertwined with emerging technologies like crypto. This allows perpetrators to conduct high-tech laundering beyond traditional regulatory reach. Recently, a Beijing court sentenced former financial official Hao Gang to 11 years in prison for bribery and Bitcoin-related money laundering. The Haidian Procuratorate recently released a white paper on commercial corruption, documenting 1,253 related cases between 2020 and 2024. Authorities highlighted how many schemes are now coordinated with external actors and depend heavily on digital tools to evade scrutiny. This case signals the need for tech companies and crypto platforms to strengthen monitoring systems amid rising enforcement efforts. Meanwhile, China’s stance on crypto remains contentious. The National Development and Reform Commission of China (NDRC) categorized the digital assets market as an undesirable industry . Against this backdrop, provinces shut down mining operations. Similarly, the Chinese government declared all crypto-related transactions illegal , solidifying the ban and prohibiting overseas exchanges from serving Chinese citizens. BeInCrypto reported a Chinese court ruling that crypto futures trading constitutes gambling, convicting BKEX employees for “opening a casino.” Notwithstanding, the country possesses a proven capacity to adjust to geopolitical shifts to sustain its economic dominance . Two such endeavors include a recent $138 billion stimulus and reverse repo rate adjustments. [BeInCrypto]

China Busts $20 Million Bitcoin Laundering Ring Tied to TikTok-Style App

According to the People's Daily, the Haidian District People's Procuratorate of Beijing issued the "White Paper on Anti-Commercial Corruption Procuratorial Work (2020-2024)", disclosing a commercial corruption case involving 140.00 million yuan. [Foresight News]

Employee of a short video platform defrauds the company of 140.0 million yuan in bonuses, using virtual currency for money laundering.

On July 27th, according to the People's Daily, the Haidian District People's Procuratorate of Beijing released the "White Paper on Anti-Commercial Corruption Procuratorial Work (2020-2024)", disclosing a commercial corruption case involving 140.00M yuan. In the case, Feng, an employee of a short video platform company, colluded with external suppliers to defraud the company of 140.00M yuan in bonuses through false application materials. In order to cover up the source of funds, Feng instructed his accomplices to use 8 overseas virtual currency trading platforms to convert the embezzled money into virtual currencies such as Bitcoin in batches, and used "mixing" technology to confuse the transaction path to achieve money laundering. Through electronic data review, the procuratorate constructed a "three-flow integration" evidence system and successfully recovered more than 90 Bitcoins. Ultimately, Feng and 6 other people were sentenced to fixed-term imprisonment ranging from three to fourteen years and six months for the crime of embezzlement. The procuratorate pointed out that the current commercial corruption shows a "means upgrade" trend such as using virtual currency for money laundering, and the digital economy field has become a high-incidence area of commercial corruption. [深潮TechFlow]

An employee of a short video platform defrauded the company of 140.0 million yuan in bonuses and used virtual currencies such as Bitcoin to launder the money.

Short video platform exposes 140.0 million yuan corruption case, employees use Bitcoin to "mix coins" for money laundering

Feng, a former employee of a short video platform, defrauded the company of 140 million yuan (about $19 million) by collaborating with external partners using insider information, according to a case announced by Beijing's Haidian District Procuratorate. It was determined that Feng and his accomplices converted this money into Bitcoin and laundered it using "coin mixing" methods. Eight people were sentenced to prison and fines. More than 90 Bitcoins were seized and turned over to authorities. According to the People's Daily, Feng was responsible for approving applications for service providers and developing and implementing incentive policies for the short-form video platform he worked for. In the rewards and incentive policies the company regularly offered to stimulate growth, Feng exploited his position to create loopholes in the system. He shared these loopholes with his external partners, Tang and Yang, and transferred millions of yuan worth of incentives using forged application documents. Multiple front companies were established by individuals affiliated with Tang and Yang to conceal the corrupt proceeds. These companies were used to collect the stimulus payments, which were then quickly funneled into secret accounts ultimately controlled by Yang. Feng and his associates used eight different overseas cryptocurrency exchanges to launder the money by converting 140 million yuan of funds into cryptocurrencies. A significant portion of the funds, made difficult to track through coin mixing, were converted into Bitcoin. Feng and his seven co-defendants were sentenced by the Beijing Haidian District People's Court to prison terms ranging from three to 14 years and six months, as well as fines, for "embezzlement through abuse of office." The verdict is final. The prosecutor's office also seized more than 90 Bitcoins, partially compensating the company for its losses. *This is not investment advice. [人民日报]

Bitcoin Scandal Erupts in China – Chinese State Newspaper Reports

北京市海淀区检察院披露，一短视频平台前员工Feng与外部商家勾结，通过泄露内部数据和虚假申报，骗取了1.40亿元补贴。挪用的资金通过壳公司收取，转换为Bitcoin，并利用“混币”技术进行洗钱，部分资金随后又转回其控制的账户。Feng及其他六人被判处三年至十四年六个月不等的有期徒刑，并处罚金。已追回90多个Bitcoin，判决已生效。[人民日报]

某短视频平台曝出1.40亿元腐败案件，员工利用Bitcoin进行“mix”操作以洗钱

北京市海淀區檢察院披露，一短視頻平臺前員工Feng與外部商家勾結，通過泄露內部數據和虛假申報，騙取了1.40億元補貼。挪用的資金通過殼公司收取，轉換爲Bitcoin，並利用“混幣”技術進行洗錢，部分資金隨後又轉回其控制的賬戶。Feng及其他六人被判處三年至十四年六個月不等的有期徒刑，並處罰金。已追回90多個Bitcoin，判決已生效。[人民日報]