In one of the biggest corporate fraud cases in recent years, eight employees from a short video platform company in Beijing have been convicted for stealing over $20 million. The employees were involved in a complex scheme that tricked the company’s bonus system and then tried to hide the stolen money by using Bitcoin.
This illegal activity was carried out over a year. Feng, one of the main people behind the fraud, had the power to manage which service providers could get bonuses. He used this position to create secret loopholes in the company’s system. Then, with the help of others both inside and outside the company, he created fake documents and set up fake participants to collect bonus payouts.
Together with his external partners, Tang and Yang, Feng diverted over 140 million yuan, which is equal to more than $20 million. This money was then funneled into shell companies—fake businesses set up only to move the stolen money around. These shell companies were created by Yang and others in the group, who helped move the funds out of China.
Bitcoin Laundering Involved International Exchanges and Coin Mixers
Once the money reached these shell companies, the group converted it into Bitcoin. They used at least eight different international cryptocurrency exchanges to do this. To make the money harder to trace, they used a method called “coin mixing.” This technique hides where the money came from by mixing it with other people’s Bitcoin, making it nearly impossible to track.
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The gang was highly organized. They split the stolen money into small parts and moved it through different exchanges and wallets. They even used coin mixers that are specially designed to break the digital trail. This created a closed loop of money laundering that made it hard for anyone to follow the money.
Despite the advanced tricks used, Chinese prosecutors were able to trace the digital transactions. They followed the money trail step by step by analyzing transaction records, data logs, and bank transfers. In total, they managed to recover over 90 Bitcoins during the investigation. However, this is only a small part of what was stolen.
Long Sentences Handed Down After High-Tech Investigation
The court found all eight people guilty of occupational embezzlement. Feng, the mastermind behind the fraud, received the longest sentence—14 years and six months in prison. Others involved, including Tang, Yang, and additional accomplices, were sentenced to prison terms ranging from three to 14 years, depending on their level of involvement.
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The investigation was led by prosecutors who specialize in crimes involving technology. They used advanced forensic tools and worked closely with financial institutions and law enforcement teams. Their goal was to collect solid evidence and rebuild the timeline of the crime, which they successfully did.
The case highlights serious problems in how tech companies manage their digital systems and bonuses. The internal loopholes and lack of checks made it easier for the fraud to happen. Prosecutors pointed out that better rules and stronger checks are needed to stop such scams in the future.
This case is seen as one of the most advanced digital financial crimes handled by Chinese authorities between 2020 and 2024. It shows how criminals like Feng, Tang, and Yang are now using modern tools like cryptocurrency to hide stolen money, and how even these methods can be broken by smart digital investigators.
The verdict has sent a strong message about how seriously China is taking crimes involving cryptocurrency and corporate fraud. It also shows that no matter how advanced the technology, law enforcement can still uncover the truth with the right tools and teamwork.