The Kuaishou scandal has drawn public attention in China due to the large scale of the corruption scheme involving cryptocurrencies.
Case Background
As a result of the investigation, eight Kuaishou employees were convicted of embezzling nearly 140 million yuan (approximately $20 million). The key figure in this scheme was a man identified by the surname Feng, who acted in concert with seven other accomplices.
Money Laundering Methods
The employees funneled the stolen money into Bitcoin through over-the-counter trading platforms, coin-mixing services, and a network of multi-hop wallets designed to obscure the source of funds.
Authorities' Response and Consequences
Despite their elaborate methods, Chinese authorities managed to trace the crypto trail, recovering 92 BTC valued at approximately $11.7 million at the time of the bust. Feng and his accomplices received prison sentences ranging from three to fourteen years. Authorities noted that the incident exemplifies "small officials with big corruption," stressing the challenges posed by cryptocurrencies to governance and law enforcement.
This case stands as a striking example of the ongoing tension between China's strict crypto policies and the reality of digital assets being used in criminal schemes.
