The Chinese authorities discovered a Bitcoin recycling operation that has exhausted a large technological company. The scheme, for a value of almost $ 20 million, was discovered within Kuaishou, one of China The largest short -video platforms. The investigation era led by officials in Beijing Haidian district AND has quickly become one of the village bigger Corporate cryptocurrency scandals for years. The 20 million dollar bitcoin case is one of the largest corporate cryptocurrency busts in China in recent years.
China Bust of $ 20 million Bitcoin recycling of the ring tied to the Tiktok style app
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Within the work fueled by manipulated bonuses
At the center of the case there is an employee named Feng, who he used his position to exploit Kuaishou’s Internal bonus and reward system. Him I did not do it act alone. Another seven helped create fake reward applications e set up Shell Companies to receive funds. The scheme worked By sending false payments to false entities, doing everything I wait legitimate on the surface. In the meantime, The professionals were orchestrastying him to escape real corporate cash.
Transform society into cash into Bitcoin
Once the money landed in the hands of the conspirators, I did not do it Sit for a long time. Has been quickly channeled Through multiple exchanges of cryptocurrencies abroad and converted into Bitcoin. To cover their tracks, the group has used cryptocurrency mixers, tools that merge transactions TO Hide where THE The money came from. People have used mixers for a long time To mask the funds, but as the tracking tools become more advanced, mixers are becoming less effective.
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The police manage to recover most of the bitcoin
Despite recycling efforts, investigators have been able to trace and recover a large piece of stolen funds. Have recovered to total of 92 BTC, it applies about $ 11.7 million. That money already has been returned In Kuaishou. Authority Done clarifies that technical tricks Not necessarily maintain hidden bad actors, especially when investigators blockchain Data and the ability to work through the borders.
Phrases handed down to all eight
All eight people involved have been sentenced. Feng received a 14 -year prison sentence, the hardest of the group. Others He got between Three AND 14 years, depending on their level of involvement. Together with the prison time, Everyone has been hit with financial penalties. This case is unusual because the employees within the company who had access and knew how to perform the system carried out it, not the external hackers or criminal rings.
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What this says China Enforcement Cripto
China has repressed crypto Since 2021, but this case brings things beyond. Show that the application it is not only concentrated On merchants or miners, but also on professionals who use cryptographic tools to steal and hide money. Although the authorities prohibit Crypto Trading, underground activity continues. Cases like this suggest that the authorities are now looking a lot closer to how people within companies could take advantage of these tools as well.
Lessons for companies and cryptographic platforms
This it was not A code escapade. It was a gap in supervision. Weak internal controls in iNentive programs created THE opening e Nobody noticed Until millions were disappeared. This is Which experts of conformity are now warning. Companies that manage great payments or tokens need closer systems to monitor those who can access what and how.
Looking to the future
In the aftermath, other Chinese technological companies are provided TO revisit their conformity protocols. Regulators can also introduce new rules for management recovered cryptocurrency activities. Since the boundaries between corporate finance and digital resources continue to escape, stories like this are no longer rare exceptions. They are becoming part of the panorama of risk. The 20 million dollar bitcoin case pushed Chinese companies to strengthen their internal bonus and reward systems.
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The authorities discovered a 20 million dollar Bitcoin recycling scheme inside the Kuaishou Chinese technology giant, led by an employee and seven accomplices.
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The group used false bonuses and shell companies to steal funds, then recycled the money through cryptocurrency exchanges and mixers.
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The authorities have recovered 92 BTC, for a value of about $ 11.7 million, showing that cross -border mixers and tactics are no longer infallible.
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The Court sentenced all eight conspirators, sentenced the head of the family to 14 years in prison and others more years behind the bars.
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This case indicates the growing attention from China on internal cryptocurrency crime, pushing companies to strengthen the supervision of reward and finance systems.
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