- Kuaishou employees illegally laundered over $19 million through cryptocurrencies.
- The court ordered the return of over 90 BTC, with sentences of up to 14.5 years of imprisonment.
A court trial has concluded in Beijing involving seven individuals connected to a large-scale money laundering scheme using cryptocurrencies. The perpetrators, including employees of the well-known Chinese platform Kuaishou, organized illegal activities that allowed them to legitimize over 140 million yuan (equivalent to $19.2 million).
This is reported by Finway
Sentences and Financial Consequences
The guilt of the members of the criminal group, including an employee named Fen, was established. Depending on their involvement in the scheme, each received sentences ranging from three to 14.5 years in prison and fines. Additionally, the court ordered the defendants to return over 90 bitcoins to the company.
“The court in Beijing found seven individuals guilty, including a company employee named Fen. Depending on their role in the crime, they were sentenced to imprisonment ranging from three to 14.5 years and fines. The defendants were required to return over 90 BTC to the company.”
Money Laundering Scheme Using Cryptocurrencies
The organizer of the scheme, Fen, was responsible for approving contractors and distributing bonuses to external suppliers. He deliberately left gaps in the company’s internal policies that allowed contractors to access confidential information. As a result, they submitted fraudulent payment requests using the achievements of other participants while formally meeting the established criteria.
Over the course of a year, the criminals managed to transfer 140 million yuan to the accounts of affiliated companies that were supposed to be paid to partners. To legitimize these funds, they used eight centralized cryptocurrency exchanges, where they exchanged yuan for bitcoin and other digital assets. The obtained funds were then routed through cryptocurrency mixers, and the cleaned money was returned in the form of yuan to bank accounts in China.
The prosecution enlisted digital security experts who helped trace the movement of funds, analyze data flows, and confirm the facts of illegal enrichment. The scheme involved fictitious and offshore companies, complicating the investigation.
It is worth noting that similar crimes involving cryptocurrencies are also being reported in other countries. Previously, a scheme laundering $190 million through cryptocurrencies and fictitious businesses was uncovered in Australia.