A former executive of a Chinese tech company has been sentenced to 14 years and 6 months in prison for embezzling company funds worth 140 million yuan ($19.5 million) and laundering them through cryptocurrency mixers and offshore exchanges.
The man, identified by the surname Feng, was responsible for approving incentive programs on a popular short video platform. Prosecutors say he conspired with external vendors to submit fake claims and redirected corporate funds to accounts under his control, which were then converted into Bitcoin and other digital assets.
🔹 Sophisticated Crypto-Based Money Laundering
The funds were funneled through eight foreign exchanges and concealed using coin mixing tools—services that anonymize blockchain transactions by pooling and redistributing digital assets. However, investigators managed to trace the transactions and recover over 90 BTC, worth approximately $11 million at current prices.
Authorities emphasized that despite increased transaction complexity, mixing tools do not guarantee complete anonymity. Using advanced forensic analysis, including pattern recognition, timestamp correlation, and statistical clustering, officials were able to partially reconstruct the flow of funds and link foreign crypto exchanges to domestic bank accounts.
🔹 Growing Risks in China’s Tech Industry
Feng was one of seven individuals convicted in the embezzlement scheme. The others received prison sentences ranging from three to over 14 years. The case was highlighted in a recent report from prosecutors in Beijing’s Haidian District, which analyzed 1,253 corruption cases in tech companies between 2020 and 2024.
The report points to a growing trend: a shift from traditional bribery to more sophisticated fraud involving cryptocurrency, data misuse, shell companies, and digital laundering. Sectors such as e-commerce and artificial intelligence were flagged as high-risk due to weak internal oversight.
Chinese law enforcement agencies are increasingly turning to blockchain analysis tools to investigate cryptocurrency-related crimes and enforce anti-money laundering laws. Firms like Salus Security, Beosin, and SlowMist are helping authorities track crypto movements and uncover digital fraud with growing precision.
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