A high-ranking Beijing official is heading to prison for his role in a major Bitcoin money laundering scheme.
Eleven Years and a Fine
Hao Gang, a former deputy director of the Beijing Financial Bureau, received an 11-year prison sentence and a $178,000 fine. A Beijing court handed down the verdict, concluding a case that began nearly two years ago. The court also ordered the seizure of his ill-gotten gains. The charges included bribery and money laundering related to Bitcoin transactions. He allegedly helped a crypto mining executive circumvent border controls in exchange for substantial bribes.
Crypto Corruption Concerns
This case highlights growing concerns within China about the use of cryptocurrency in corruption. Experts point out the challenges in tracking and prosecuting crypto-related crimes due to the anonymous nature of many transactions. The decentralized and peer-to-peer structure of cryptocurrencies makes it difficult for authorities to monitor and regulate them, creating opportunities for illicit activities. One legal expert noted that the lack of official recognition of Bitcoin in China, while it functions as a currency, further complicates the issue of identifying and processing such crimes.
