A former manager at a Chinese tech company has been sentenced to over 14 years in prison for stealing company funds and hiding them through cryptocurrency.
According to South China Morning Post’s report on July 29, the Beijing court found that the man, known by the surname Feng, took 140 million yuan (around $19.5 million) while overseeing reward payments at a short video platform.
Prosecutors explained that Feng worked with outside contractors to submit fake claims. The company’s money was then sent to accounts he controlled. From there, the funds were turned into Bitcoin and other digital currencies using eight foreign trading platforms.
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To hide where the money came from, Feng and his partners used crypto mixing tools. However, the authorities were able to follow the money. They recovered over 90 Bitcoin, worth nearly $11 million.
The investigation used digital tracking methods to uncover the full scheme. Prosecutors said they followed the movement of money from the time it was stolen to when it was exchanged and moved abroad. They were also able to connect those exchanges back to Chinese bank accounts.
Prosecutor Li Tao described the case as an example of low-level employees being involved in serious fraud, using crypto to move the money, and companies not having strong enough controls to stop it.
Recently, Rowland Marcus Andrade, the man who launched a cryptocurrency called AML Bitcoin, was sentenced to seven years in prison. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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