A court in Beijing has sentenced seven citizens who organized a large-scale money laundering scheme through cryptocurrencies, using the corporate resources of the Kuaishou platform. According to the investigation, the perpetrators legalized over 140 million yuan (approximately $19.2 million) by exchanging stolen funds for digital assets and transferring them through crypto mixers for further withdrawal to bank accounts in yuan.
This is reported by Business • Media
Details of the Verdict and Mechanism of the Crime
Members of the criminal group, including a platform employee named Feng, received prison terms ranging from three to 14.5 years depending on their level of involvement. The court also ordered the guilty parties to pay fines and return over 90 bitcoins to the company.
The organizer of the scheme, Feng, was responsible for implementing a new policy for contractor approvals and bonus programs for external suppliers. He deliberately left gaps in the documentation, provided contractors with confidential information, and granted them access to fraudulent operations. The contractors submitted fake applications that formally met the criteria but contained achievements from other companies. As a result, over the course of a year, 140 million yuan intended for partner payments was withdrawn to the accounts of affiliated firms.
Use of Cryptocurrencies and Digital Expertise
To launder the money, the criminals utilized eight centralized cryptocurrency exchanges, exchanging yuan for bitcoin and other digital assets. The digital funds were then transferred through crypto mixers, after which they were returned as yuan to bank accounts.
The prosecution engaged digital finance experts to trace the money flows and analyze the data transfer channels. The expertise helped establish connections between the fictitious companies, offshore accounts, and the scheme for legalizing illegal income.
The court in Beijing found seven individuals guilty, including a company employee named Feng. Depending on their role in the crime, they were sentenced to prison terms ranging from three to 14.5 years and fines. The defendants were required to return over 90 BTC to the company.
It is worth noting that similar money laundering schemes are gaining momentum in various countries. Recently, a similar scheme amounting to $190 million was uncovered in Australia, involving cryptocurrencies and fictitious companies.