Beijing is reeling from one of the most sophisticated corruption scandals in recent years. Eight individuals have just been sentenced for embezzling over 140 million yuan (approximately $20 million) from a tech company operating a popular short-video platform. The stolen funds were laundered using cryptocurrencies—specifically Bitcoin—and now, the perpetrators are heading to prison.

🔓 It All Started Inside the Company: Bonus System Manipulation

The entire scheme originated within the company, where an employee named Feng oversaw the approval of service providers and bonus payouts. With access to sensitive systems and internal policies, he exploited this power to create loopholes in company guidelines and shared them with two external collaborators—Tang and Yang.

Together, they submitted fake bonus claims that appeared legitimate. Real workers received no rewards; instead, the money was funneled to fake companies that existed only on paper.

💸 Laundering Through Bitcoin and International Exchanges

Once the funds were drained from the company, phase two began. The group set up a network of bank accounts and shell companies. They shuffled the money through these entities before converting it to cryptocurrency.

They used eight different international crypto exchanges and employed an advanced method called a “coin mixer”—an anonymizing tool that scrambles crypto transactions, making the origins of the funds nearly impossible to trace. This “digital washing machine” operated across borders, with some funds eventually looping back to accounts secretly controlled by the perpetrators themselves.

📊 Digital Forensics Played a Key Role

The case was cracked by Li Tao, a prosecutor specializing in tech crime in Beijing’s Haidian District. Investigators used advanced data analytics and blockchain forensics to trace the transactions, link fake documents, and follow the money trail.

“We recovered over 90 Bitcoins,” Li stated. While this accounts for only a portion of the stolen funds, it confirmed the gang’s laundering techniques and the path of the money.

⚖️ Harsh Sentences: 14 Years in Prison for Digital Embezzlement

A Beijing court described the case as a “model example of internal corporate corruption with a crypto twist.” Feng, the mastermind, received the longest sentence—14 years and 6 months. The rest of the group received sentences ranging from 3 to 14 years. All were found guilty of occupational embezzlement and manipulation of corporate assets.


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