A former Beijing technology executive has been sentenced to 14.5 years imprisonment for embezzling 140 million yuan and laundering the proceeds through cryptocurrency exchanges. The defendant, identified by the surname Feng, orchestrated the scheme while employed at a short-video platform by authorizing fraudulent incentive payouts before collaborating with offshore crypto platforms to obscure the funds.
Prosecutors leveraged advanced blockchain analytics to trace the illicit transactions across multiple crypto addresses, resulting in the recovery of over 90 Bitcoin valued at approximately $11 million. The successful seizure highlights how blockchain forensic techniques—including transactional pattern analysis, address clustering, and timed transaction mapping—are becoming critical tools in combating financial crime within digital asset ecosystems.
The case forms part of a broader pattern of crypto-facilitated corporate fraud documented in a whitepaper by Beijing’s Haidian District prosecutors. The study analyzed 1,253 corruption cases from the tech sector, featuring Feng’s prosecution among ten illustrative examples of emerging financial crime methodologies exploiting digital assets.
This conviction underscores law enforcement’s increasing reliance on specialized blockchain analytics partnerships with cybersecurity firms to unravel complex money laundering operations. Investigators confirmed such collaborations significantly enhance forensic capabilities for tracing and recovering illicit crypto flows in corporate fraud schemes.