Embezzlement and Money Laundering
A Chinese bank, the Bank of Huludao, uncovered a massive embezzlement and money laundering scheme involving two of its former executives. They embezzled a whopping 1.8 billion yuan ($248 million) and used cryptocurrency to launder the funds.
Cryptocurrency and Cross-Border Laundering
The executives converted the embezzled funds into foreign currency and invested them in cryptocurrency through platforms like WeChat and cryptocurrency trading groups. They then sold the cryptocurrency abroad and laundered the proceeds through US dollar transactions into Hong Kong bank accounts.
Legal Repercussions
One of the accomplices, a 44-year-old named Chen, has been sentenced to over two years in prison for his role in laundering part of the embezzled funds.
Broader Implications
This case highlights the use of cryptocurrency for illegal transactions despite China’s strict anti-crypto regulations. Recent crackdowns have targeted networks using cryptocurrency for unauthorized currency exchanges and illegal transactions involving Tether’s USDT stablecoin.
Authorities’ Response
Authorities have seized 149 million yuan linked to these illicit activities and initiated 58 criminal cases. The Chengdu Municipal Public Security Bureau has arrested 193 individuals and dismantled a widespread underground banking operation that operated in 26 provinces and regions.
