Ex-Tech Employee Jailed After Laundering $19M in Bitcoin Using Insider Scheme
A former employee of a Chinese short video company has been sentenced to prison after orchestrating a sophisticated insider fraud that funneled approximately 140 million yuan (around $19 million) into Bitcoin through coin-mixing methods.
According to Beijing’s Haidian District Procuratorate, the accused, identified as Feng, exploited his internal role overseeing service provider applications and incentive programs to siphon company funds in collaboration with external partners.
By manipulating reward mechanisms intended to boost platform growth, Feng created systemic loopholes and forged documents to push payouts to a network of fake companies controlled by his co-conspirators.
The fraudulent funds were quickly rerouted through shell companies linked to Feng’s associates, Tang and Yang, and converted into cryptocurrency via eight overseas exchanges. Much of the money was hidden using coin mixers—tools designed to obscure transaction trails—before being transformed into Bitcoin.
The scheme eventually unraveled, leading to the arrest and conviction of Feng and seven others. The Beijing Haidian District People’s Court handed down sentences ranging from three years to 14 years and six months, alongside financial penalties. The judgment is final.
Authorities recovered more than 90 Bitcoins from the group, which were confiscated to partially reimburse the defrauded company.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
