Beijing: Details of 140 Million RMB Reward Fraud Case on a Short Video Platform Revealed, Involving Money Laundering with Cryptocurrency to Transfer Illicit Funds

BlockBeats News, July 28th, a former employee of a short video platform company in Haidian District, Beijing, named Feng, took advantage of his position to collude with external suppliers, exploit loopholes in the reward policy, leak internal data, and illegally embezzle 140 million yuan in company rewards. The individuals involved also transferred the stolen funds through methods such as registering shell companies and laundering virtual currency. Feng instructed Tang and Yang to use 8 different overseas virtual currency exchanges to gradually convert the embezzled funds into Bitcoin and other virtual currencies.

In order to completely sever the traceability of the fund flow, Feng's group used a more covert "coin mixing" method, which confuses the cryptocurrency transaction path through technical means to achieve "privacy" protection. Faced with evidence, Feng's group had to surrender over 90 hidden Bitcoins, helping the company recover some losses. In the end, Feng and 6 others were sentenced by the Haidian District People's Court for the crime of embezzlement, receiving prison terms ranging from fourteen years and six months to three years, along with corresponding fines. The judgment is now in effect.