According to the Haidian District People’s Procuratorate, the suspects embezzled the funds and laundered them through a complex network of eight overseas cryptocurrency exchanges, using coin-mixing services to erase transaction traces. Despite their efforts, investigators tracked the funds and recovered 92 BTC (worth about $11.7 million), which was returned to the company.
The case is seen as a prime example of the challenges posed by digital-era crime. Prosecutor Li Tao highlighted three key traits of this new form of corruption: “low-level officials with large-scale corruption, laundering through virtual currencies, and weak corporate risk management.”
Feng, the mastermind, along with seven accomplices, were convicted of occupational embezzlement and sentenced to prison terms ranging from 3 to 14 years. The verdict, handed down by the Haidian District Court, underscores China’s increasing ability to trace digital assets despite anonymity-enhancing technologies.
Beyond its monetary scale, the case reflects a rising trend of commercial corruption entangled with emerging technologies such as cryptocurrency, which enable laundering activities beyond traditional regulatory oversight.
In a separate case, a Beijing court recently sentenced former financial official Hao Gang to 11 years in prison for bribery and Bitcoin-related money laundering.
The Haidian Procuratorate also released a white paper on commercial corruption, reporting 1,253 cases between 2020 and 2024. Many of these involved coordination with external actors and heavy use of digital tools to evade detection.
Amid rising enforcement efforts, Chinese authorities are urging tech companies and crypto platforms to strengthen monitoring and internal control systems.
China continues to uphold a strict anti-crypto stance. The government has banned all crypto-related transactions and barred foreign exchanges from serving Chinese citizens. Crypto mining operations have also been shut down in many provinces. In one recent ruling, a Chinese court classified crypto futures trading as gambling and convicted BKEX exchange employees for “operating a casino.”
Nevertheless, despite its hardline approach, China remains adaptive in economic policy. Recent efforts, including a $138 billion stimulus package and adjustments to reverse repo rates, demonstrate the country’s intent to maintain economic dominance amid global shifts.
