{"id":84487,"date":"2025-07-29T00:37:10","date_gmt":"2025-07-29T00:37:10","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=84487"},"modified":"2025-07-29T00:37:10","modified_gmt":"2025-07-29T00:37:10","slug":"20-million-bitcoin-laundering-ring-busted-in-china","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=84487","title":{"rendered":"$20 Million Bitcoin Laundering Ring Busted in China"},"content":{"rendered":"

Chinese authorities uncovered a Bitcoin laundering operation that ran out of a major tech company. The scheme, worth nearly $20 million, was uncovered inside Kuaishou, one of <\/span>China\u2019s<\/span> largest short-video platforms. <\/span>The investigation <\/span>was<\/span> led by officials in <\/span>Beijing\u2019s<\/span> Haidian District <\/span>and<\/span> has quickly become one of the <\/span>country\u2019s<\/span> biggest<\/span> corporate crypto scandals in years. The $20 million Bitcoin case is one of the biggest corporate crypto busts in China in recent years.
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China Busts $20 Million Bitcoin Laundering Ring Tied to TikTok-Style App<\/p>\n

\u2014 Bradicoin (@Bradicoin10) July 28, 2025<\/a><\/p>\n\n

Inside Job Fueled by Manipulated Bonuses<\/span><\/h2>\n

At the center of the case is an employee named Feng, who <\/span>used his position to exploit<\/span> Kuaishou\u2019s<\/span> internal bonus and reward system.<\/span> He <\/span>didn\u2019t<\/span> act alone. <\/span>Seven others <\/span>helped create<\/span> fake reward applications and <\/span>set up<\/span> shell companies to receive the funds.<\/span> The scheme <\/span>worked<\/span> by sending fake payouts to fake entities, making everything <\/span>look<\/span> legitimate on the surface. Meanwhile, <\/span>insiders were orchestrating it to siphon off real corporate cash.<\/span><\/p>\n

Turning Company Cash into Bitcoin<\/span><\/h2>\n

Once the money landed in the hands of the conspirators, it <\/span>didn\u2019t<\/span> sit around for long. <\/span>It was quickly funneled<\/span> through multiple overseas crypto exchanges and converted into Bitcoin. <\/span>To cover their tracks, the group used crypto mixers, tools that blend transactions <\/span>to <\/span>hide where<\/span> the <\/span>money came from<\/span>.<\/span> People have long used mixers <\/span>to mask funds, but as tracking tools become more advanced, mixers are becoming less effective.<\/span><\/p>\n

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Police Manage to Recover Most of the Bitcoin<\/span><\/h2>\n

Despite the laundering efforts, investigators were able to trace and recover a large chunk of the stolen funds. They retrieved a<\/span>\u00a0total of 92 BTC, <\/span>worth about<\/span> $11.7 million<\/span>.<\/span> That money has already <\/span>been returned<\/span> to Kuaishou. <\/span>Authorities <\/span>made<\/span> it clear that technical tricks <\/span>won\u2019t<\/span> necessarily keep bad actors hidden, especially when investigators have <\/span>blockchain<\/span> data and the ability to work across borders.<\/span><\/p>\n

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$2.34T<\/div>\n<\/div>\n<\/div>\n<\/div>\n
24h<\/span>7d<\/span>30d<\/span>1y<\/span>All time<\/span><\/div>\n<\/div>\n<\/div>\n

Sentences Handed Down to All Eight<\/span><\/h2>\n

All eight people involved have <\/span>been convicted<\/span>. Feng received a 14-year prison sentence, the harshest of the group. <\/span>The others <\/span>got between<\/span> three <\/span>and<\/span> 14 years, depending on their level of involvement.<\/span> Along with prison time, <\/span>each was hit<\/span> with financial penalties. This case is unusual because employees inside the company who had access and knew how to game the system carried it out, not external hackers or criminal rings.<\/span><\/p>\n

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What This Says About <\/span>China\u2019s<\/span> Crypto Enforcement<\/span><\/h2>\n

China has been cracking down on <\/span>crypto<\/span> since 2021, but this case takes things further.<\/span> It shows that enforcement <\/span>is not just focused<\/span> on traders or miners, but also on insiders who use crypto tools to steal and hide money. Although authorities ban <\/span>crypto trading, underground activity <\/span>continues<\/span>.<\/span> Cases like this one suggest authorities are now looking much <\/span>closer<\/span>\u00a0at how people inside companies might be exploiting these tools <\/span>too<\/span>.<\/span><\/p>\n

Lessons for Companies and Crypto Platforms<\/span><\/h2>\n

This<\/span> wasn\u2019t<\/span> a loophole in code. It was a gap in oversight. Weak internal controls in i<\/span>ncentive programs<\/span>\u00a0created <\/span>the<\/span> opening, and <\/span>no one noticed<\/span> until millions were gone.<\/span> That\u2019s<\/span> what compliance experts are now warning against. Firms that handle large payouts or tokens need tighter systems to monitor who can access what, and how.<\/span><\/p>\n

Looking Ahead<\/span><\/h2>\n

In the aftermath, other Chinese tech companies <\/span>are expected<\/span> to <\/span>revisit<\/span> their compliance protocols. <\/span>Regulators may also introduce new rules <\/span>for handling <\/span>recovered crypto assets.<\/span> As the lines between corporate finance and digital assets continue to blur, stories like this are no longer rare exceptions. They are becoming part of the risk landscape. The $20 million Bitcoin case prompted Chinese companies to tighten their internal bonus and reward systems.<\/span><\/p>\n

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Key Takeaways<\/h2>\n

Authorities uncovered a $20 million Bitcoin laundering scheme inside Chinese tech giant Kuaishou, led by an insider and seven accomplices. <\/p>\n

The group used fake bonus applications and shell companies to steal funds, then laundered the money through crypto exchanges and mixers. <\/p>\n

Authorities recovered 92 BTC, worth around $11.7 million, showing that mixers and cross-border tactics are no longer foolproof. <\/p>\n

The court convicted all eight conspirators, sentencing the ringleader to 14 years in prison and others to multiple years behind bars. <\/p>\n

This case signals China\u2019s growing focus on internal crypto crime, pushing companies to tighten oversight of reward and finance systems. <\/p><\/div>\n

The post $20 Million Bitcoin Laundering Ring Busted in China<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Chinese authorities uncovered a Bitcoin laundering operation that ran out of a major tech company. The scheme, worth nearly $20 million, was uncovered inside Kuaishou, one of China\u2019s largest short-video platforms. The investigation was led by officials in Beijing\u2019s Haidian District and has quickly become one of the country\u2019s biggest corporate crypto scandals in years. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-84487","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/84487"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84487"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/84487\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}