China Arrests Money Laundering Network Involving Over 510 Billion VND via Bitcoin, Related to Large Social Media Platform Employees.
A serious money laundering case involving cryptocurrency has been uncovered by Chinese authorities, with embezzled funds reaching 140 million yuan (approximately 510 billion VND). Notably, the case involves internal personnel from Kuaishou – the second-largest social media platform in China.
Investigators revealed that the ringleader was Feng, an employee responsible for reviewing commission payments for external partners at Kuaishou. Exploiting the company's financial system access, Feng collaborated with two external individuals named Tang and Yang to create fake payment records, illegally withdrawing around 510 billion VND over nearly a year.
The entire amount was then transferred to "shell" companies established by the group, quickly converted to Bitcoin through eight international cryptocurrency exchanges. To obscure their tracks, the group used a "Coin Mixer" service to hide the true identities of wallet addresses involved in transactions.
However, by using on-chain data analysis and cross-referencing KYC information from foreign exchanges, Chinese authorities traced the money flow. The investigation was also supported by cross-border cooperation, helping to accurately track cryptocurrency transfers across multiple countries.
As a result, authorities seized 92 Bitcoin – estimated to be worth approximately 11.7 million USD at the time of recovery. This is one of the largest cryptocurrency asset seizures ever reported in China.
A Beijing court sentenced Feng to 14.5 years in prison. The two other accomplices received sentences ranging from 3 to 14 years. Additionally, five other individuals involved were punished with various penalties, including prison terms and fines.
