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

A court in Beijing sentenced a former technology company up to 14 years and six months in prison for embezzlement of 140 million Yuan (US $ 19.5 million) and money laundering via Crypto on Tuesday.

The manager, nicknamed Feng, kept the responsibility for approving stimulation expenditure on a short video platform.

Public Prosecutors said he collaborated with external suppliers to submit false claims and to convert business funds into accounts he checked. The money was then converted into Bitcoin and other digital assets on eight overseas trading platforms.

The case is characterized by three functions: “Petty officials who commit great corruption, money laundering by virtual currency and weak enterprise risky,” explained the public prosecutor Li Tao to the local newspaper People dailywith the report First quoted Through South -China Morning Post.

To cover up the origins of the funds, Feng and his employees used Coinmix techniques: tools that cover blockchain transaction councils by playing and redistributing crypto activa. Authorities have traced the power and eventually found more than 90 bitcoin, worth almost $ 11 million at current prices.

“Tracing funds through coins increases the complexity considerably, but does not guarantee complete anonymity” Decrypt.

Current blockchain analytics tools “Make use of pattern recognition, statistical clustering and timing analysis,” Dadybayo explained.

As a result, researchers can in many cases “reconstruct partially or even complete flows”, although they depend on the “size of the anonymity set and the behavior of the actors involved,” he added.

Public Prosecutors said their research used advanced electronic data evaluation used to trace the flow of funds, embezzlement, conversion and money laundering. Digital forensic research has helped in the MGen of coins in mixing and connecting offshore exchanges to domestic banks.

With reference to local companies such as Salus Security, Beosin and Slowmist, Dadybayo said that Chinese law enforcement has increasingly used blockchain analysis tools in crypto investigations to support assets and AML enforcement.

A total of seven people were convicted of embezzlement of the profession, prison sentences ranging from three to more than 14 years, together with extra fines.

The case is an example of findings of one white paper Released by the Haidian District Officers of Justice Van Beijing Analyze from 2020 to 2024 1,253 Commercial corruption cases in technology companies.

The report showed a shift from traditional bribery to crypto-compatible fraud, with tactics such as data abuse, Shell companies and money laundering.

Sectors such as e-commerce and AI were marked as high risk due to weak supervision. The Feng’s case was one of the ten marked examples.