cryptocurrency laundering in China

Key Points:* Beijing employee laundered 140 million yuan via cryptocurrency.

• Sentenced to imprisonment along with collaborators.
• Authorities tighten oversight on cryptocurrency transactions. In Beijing’s Haidian District, former short video platform employee Feng orchestrated an illicit operation, converting 140 million yuan into cryptocurrencies using overseas exchanges, leading to multiple arrests.

This event highlights persistent digital economy risks, especially with cryptocurrency’s role in facilitating financial crimes, urging stricter regulatory oversight and risk management.

Beijing Crypto Scandal: Laundering 140 Million Yuan

Feng, a former employee of a short video platform in Beijing, orchestrated a scheme to exploit company reward loopholes, illegally acquiring 140 million yuan. Collaboration with accomplices involved using multiple overseas exchanges to convert the funds into cryptocurrency. China’s legal system responded with prison sentences for Feng and collaborators, ranging from three to fourteen years.

The incident illustrates the challenges of regulating digital currencies. Cryptocurrency’s appeal in laundering activities is due to the anonymity it provides, posing an increasing threat as commercial corruption tactics become more advanced. This necessity for advanced regulatory frameworks is highlighted by the 2023 IC3 Cryptocurrency Report.

“The criminal use of ‘mixing currency’ technology to break the traceability chain emphasizes the seriousness of the offense, linking it to broader risks in China’s digital economy.” — People’s Daily

Rising Concerns Over Crypto Use in Financial Crimes

Did you know? Similar to Feng’s case, the 2019 PlusToken scandal involved scams utilizing Bitcoin and Ethereum to launder billions, prompting increased regulatory action in China.

According to CoinMarketCap, Bitcoin’s current trading price is $119,624.72 with a market cap of $2.38 trillion. The cryptocurrency has experienced a 24-hour price increase of 1.40%, with a 90-day positive shift of 25.87%. Bitcoin remains a dominant force in the crypto market with a 60.18% market cap dominance.

Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 00:24 UTC on July 28, 2025. Source: CoinMarketCap The Coincu research team suggests effective regulatory measures could mitigate crypto-related financial crime. Historical trends indicate that imposing stricter oversight on cryptocurrency exchanges and enhancing technological solutions will be crucial for controlling illicit activities.

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