A former employee of a Chinese short video company has been sentenced to prison after orchestrating a sophisticated insider fraud that funneled approximately 140 million yuan (around $19 million) into Bitcoin through coin-mixing methods.
According to Beijing’s Haidian District Procuratorate, the accused, identified as Feng, exploited his internal role overseeing service provider applications and incentive programs to siphon company funds in collaboration with external partners.
By manipulating reward mechanisms intended to boost platform growth, Feng created systemic loopholes and forged documents to push payouts to a network of fake companies controlled by his co-conspirators.
The fraudulent funds were quickly rerouted through shell companies linked to Feng’s associates, Tang and Yang, and converted into cryptocurrency via eight overseas exchanges. Much of the money was hidden using coin mixers—tools designed to obscure transaction trails—before being transformed into Bitcoin.
The scheme eventually unraveled, leading to the arrest and conviction of Feng and seven others. The Beijing Haidian District People’s Court handed down sentences ranging from three years to 14 years and six months, alongside financial penalties. The judgment is final.
Authorities recovered more than 90 Bitcoins from the group, which were confiscated to partially reimburse the defrauded company.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/ex-tech-employee-jailed-after-laundering-19m-in-bitcoin-using-insider-scheme/