China convicts crypto money launderers who embezzled US$20 million from Beijing tech firm

The case adds to the amount of confiscated crypto assets accumulated by China, which prohibits the trading of such virtual assets

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China has convicted a man accused of embezzling funds from his employer and laundering them in the cryptocurrency market. Photo: Shutterstock

Published: 8:00pm, 29 Jul 2025

Chinese official media reported details of a crackdown on a money-laundering operation involving cryptocurrencies, shedding light on the mainland’s underground crypto landscape and increased efforts by authorities to seize crypto assets.

According to a report last week by the People’s Daily, which cited the Beijing Haidian People’s Procuratorate’s ruling, a former executive surnamed Feng embezzled 140 million yuan (US$19.5 million) from his employer, a tech firm. He then used eight overseas virtual currency trading platforms to convert the funds into bitcoin and other cryptocurrencies.

Feng and his accomplices employed a so-called coin mixing strategy to obscure the origin of their money, converted portions of their cryptocurrencies back into yuan, and then transferred the funds into their mainland bank accounts.

During the investigation, prosecutor Li Tao from the hi-tech crime division of the Haidian People’s Procuratorate, reconstructed the entire process of how the funds were embezzled, transferred, laundered, and divided to build charges against Feng and his associates, according to the report.

Feng was ordered to surrender 90 “hidden” bitcoin valued at over US$11 million based on current prices. He was convicted and sentenced to more than 14 years in prison.

The case highlighted the rising use of cryptocurrencies for money laundering in China, where authorities maintain a stringent ban on crypto trading and prohibit its banking system from engaging with these virtual assets.

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China convicts crypto money launderers who embezzled US$20 million from Beijing tech firm

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The case adds to the amount of confiscated crypto assets accumulated by China, which prohibits the trading of such virtual assets

The case adds to the amount of confiscated crypto assets accumulated by China, which prohibits the trading of such virtual assets