A former employee from a tech company has been sentenced for partaking in a scheme that laundered $19 million through fake companies and manipulation of internal reward mechanisms.
The Theft Scheme
The accused, known as Feng, exploited his internal role to defraud the company in collaboration with external partners. He manipulated reward programs to profit for himself and his accomplices.
Money Laundering Techniques
Feng created systemic loopholes by forging documents and directing payouts to a network of fake companies controlled by his co-conspirators. The fraudulent funds were quickly rerouted through shell companies and then converted into cryptocurrency via eight overseas exchanges.
Investigation Results and Sentencing
As a result of the scheme, eight individuals, including Feng, were arrested and convicted. Sentences ranged from three years to fourteen and a half years. Authorities also recovered more than 90 Bitcoins from the group, which were confiscated to partially reimburse the defrauded company.
The case underscores the risks associated with insider abuses in the corporate sector and the challenges law enforcement faces in combating money laundering in cryptocurrency.
