Kuaishou Crypto Laundering Case: $19M Recovered, 7 Sentenced
The post Kuaishou Crypto Laundering Case: $19M Recovered, 7 Sentenced appeared on BitcoinEthereumNews.com. Several employees of Kuaishou, a leading Chinese technology platform, were found guilty of orchestrating a large-scale cryptocurrency money laundering scheme totaling more than 140 million yuan (approximately $19.2 million). A Beijing court sentenced the seven convicted individuals, including a key employee named Feng, to prison terms ranging from three to 14.5 years and imposed fines. Additionally, the court ordered the return of over 90 Bitcoin (BTC) to the company. How the Scheme Operated Feng, responsible for approving contractors and managing bonus programs for external suppliers, exploited policy loopholes and leaked sensitive information to contractors. This enabled the submission of fraudulent bids that appeared compliant but relied on achievements from legitimate bidders. Over the course of a year, funds intended for partner payments were diverted to affiliated companies’ accounts. To launder the illicit proceeds, the perpetrators used eight centralized cryptocurrency exchanges to convert yuan into bitcoin and other digital assets. These assets were then moved through crypto mixers before finally being withdrawn back into yuan and transferred to bank accounts. Investigation and Legal Outcome The prosecutor’s office employed advanced digital forensics to trace data transmissions and financial flows, confirming illegal enrichment linked to shell companies and offshore accounts. The comprehensive investigation led to the conviction of all seven defendants and the recovery of significant cryptocurrency assets. This case highlights the increasing complexity of financial crimes in the cryptocurrency space and the growing capabilities of law enforcement to combat such schemes effectively. Moving forward, it underscores the critical need for stricter regulatory oversight and enhanced security measures within tech platforms to prevent similar frauds. Source: https://coinpaper.com/10225/chinese-men-sentenced-to-prison-for-cryptocurrency-money-laundering-scheme
The post Kuaishou Crypto Laundering Case: $19M Recovered, 7 Sentenced appeared on BitcoinEthereumNews.com.
Several employees of Kuaishou, a leading Chinese technology platform, were found guilty of orchestrating a large-scale cryptocurrency money laundering scheme totaling more than 140 million yuan (approximately $19.2 million). A Beijing court sentenced the seven convicted individuals, including a key employee named Feng, to prison terms ranging from three to 14.5 years and imposed fines. Additionally, the court ordered the return of over 90 Bitcoin (BTC) to the company. How the Scheme Operated Feng, responsible for approving contractors and managing bonus programs for external suppliers, exploited policy loopholes and leaked sensitive information to contractors. This enabled the submission of fraudulent bids that appeared compliant but relied on achievements from legitimate bidders. Over the course of a year, funds intended for partner payments were diverted to affiliated companies’ accounts. To launder the illicit proceeds, the perpetrators used eight centralized cryptocurrency exchanges to convert yuan into bitcoin and other digital assets. These assets were then moved through crypto mixers before finally being withdrawn back into yuan and transferred to bank accounts. Investigation and Legal Outcome The prosecutor’s office employed advanced digital forensics to trace data transmissions and financial flows, confirming illegal enrichment linked to shell companies and offshore accounts. The comprehensive investigation led to the conviction of all seven defendants and the recovery of significant cryptocurrency assets. This case highlights the increasing complexity of financial crimes in the cryptocurrency space and the growing capabilities of law enforcement to combat such schemes effectively. Moving forward, it underscores the critical need for stricter regulatory oversight and enhanced security measures within tech platforms to prevent similar frauds. Source: https://coinpaper.com/10225/chinese-men-sentenced-to-prison-for-cryptocurrency-money-laundering-scheme
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