Eight individuals in Beijing were sentenced for stealing 140 million yuan (approximately $20 million) from a short video platform and laundering the stolen funds through cryptocurrency.
Fraud Scheme at Video Platform
The operation was orchestrated internally by an employee named Feng, who controlled how service providers joined the platform and how bonuses were set. He approved who qualified for bonuses and ensured the flow of money, allowing him and his collaborators to manipulate the system. Feng created deliberate loopholes in bonus policies and leaked private data to his partners, enabling them to claim fraudulent bonuses.
As a result, instead of rewarding actual work, the stolen bonuses were directed to fake participants for a year until the scheme was exposed.
Use of Cryptocurrency for Money Laundering
After moving the funds into shell accounts, Feng instructed his associates to convert the money into cryptocurrency. The group utilized eight different international platforms to break down the funds into batches of Bitcoin, obscuring the movement of money across borders. They then employed a coin mixing technique, complicating the traceability of the transactions and obscuring the origins of the funds.
Subsequently, some of the laundered money returned to accounts secretly controlled by Feng, Tang, and Yang.
Investigation Outcomes and Sentencing
Prosecutor Li Tao, working in the Science and Technology Crime division, built an evidence system by comparing data, transaction records, and cash flows that confirmed each step of the fraud. As a result, more than 90 Bitcoin were recovered during the investigation, confirming the gang's methods and the money trail. The court sentenced Feng to 14 years and 6 months in prison, while other group members received sentences ranging from three to fourteen years along with fines.
The case of fraud against a short video platform in Beijing highlights the risks associated with internal corporate manipulation and the extent to which technology can be exploited for criminal activities.
