Chinese Exec Jailed for Laundering $19.5M Through Crypto Mixers, Exchanges – Decrypt

A Beijing courtroom sentenced a former expertise agency government to 14 years and 6 months in jail on Tuesday for embezzling 140 million yuan (US$19.5 million) and laundering the funds by crypto.

The manager, surnamed Feng, held duty for approving incentive payouts at a brief video platform.

Prosecutors stated he colluded with exterior distributors to submit false claims and reroute company funds into accounts he managed. The cash was then transformed into Bitcoin and different digital property throughout eight abroad buying and selling platforms.

The case is marked by three options: “petty officers committing main corruption, laundering by digital forex, and weak enterprise threat consciousness,” prosecutor Li Tao defined to the native paper Individuals’s Day by day, with the report first cited by South China Morning Publish.



To obscure the origin of the funds, Feng and his associates employed coin mixing methods: instruments that obfuscate blockchain transaction trails by pooling and redistributing crypto property. Authorities traced the move and finally recovered over 90 Bitcoin, price virtually $11 million at present costs.

“Tracing funds by coin mixing considerably will increase complexity, however doesn’t assure full anonymity,” Dan Dadybayo, analysis and technique lead at Unstoppable Pockets, informed Decrypt.

Present blockchain analytics instruments “leverage sample recognition, statistical clustering, and timing evaluation,” Dadybayo defined.

By these, investigators may “partially and even absolutely reconstruct flows in lots of instances,” although these rely upon the “dimension of the anonymity set and conduct of the actors concerned,” he added.

Prosecutors stated their investigation used superior digital information evaluation to hint the move of funds, detailing embezzlement, conversion, and laundering. Digital forensics helped hint coin mixing and hyperlink offshore exchanges to home banks.

Citing native companies corresponding to Salus Safety, Beosin, and SlowMist, Dadybayo stated Chinese language regulation enforcement has more and more used blockchain analytics instruments in crypto investigations to help asset tracing and AML enforcement.

A complete of seven people had been convicted of occupational embezzlement, receiving jail sentences starting from three to over 14 years, together with extra fines.

The case exemplifies findings from a whitepaper launched by Beijing’s Haidian District prosecutors analyzing 1,253 business corruption instances in tech firms from 2020 to 2024.

The report confirmed a shift from conventional bribery to crypto-enabled fraud, with techniques like information abuse, shell companies, and cash laundering.

Sectors like e-commerce and AI had been flagged as high-risk as a result of weak oversight. Feng’s case was among the many ten highlighted examples.