{"id":39237,"date":"2025-07-29T02:16:58","date_gmt":"2025-07-29T02:16:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=39237"},"modified":"2025-07-29T02:16:58","modified_gmt":"2025-07-29T02:16:58","slug":"20-million-bitcoin-laundering-ring-busted-in-china","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=39237","title":{"rendered":"$20 Million Bitcoin Laundering Ring Busted in China"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Chinese authorities uncovered a Bitcoin laundering operation that ran out of a major tech company. The scheme, worth nearly $20 million, was uncovered inside Kuaishou, one of <\/span><span data-preserver-spaces=\"true\">China\u2019s<\/span><span data-preserver-spaces=\"true\"> largest short-video platforms. <\/span><span data-preserver-spaces=\"true\">The investigation <\/span><span data-preserver-spaces=\"true\">was<\/span><span data-preserver-spaces=\"true\"> led by officials in <\/span><span data-preserver-spaces=\"true\">Beijing\u2019s<\/span><span data-preserver-spaces=\"true\"> Haidian District <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> has quickly become one of the <\/span><span data-preserver-spaces=\"true\">country\u2019s<\/span> <span data-preserver-spaces=\"true\">biggest<\/span><span data-preserver-spaces=\"true\"> corporate crypto scandals in years. The $20 million Bitcoin case is one of the biggest corporate crypto busts in China in recent years.<br \/>\n<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">China Busts $20 Million Bitcoin Laundering Ring Tied to TikTok-Style App<\/p>\n<p>\u2014 Bradicoin (@Bradicoin10) <a href=\"https:\/\/twitter.com\/Bradicoin10\/status\/1949742360243446071?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">July 28, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span data-preserver-spaces=\"true\">Inside Job Fueled by Manipulated Bonuses<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">At the center of the case is an employee named Feng, who <\/span><span data-preserver-spaces=\"true\">used his position to exploit<\/span> <span data-preserver-spaces=\"true\">Kuaishou\u2019s<\/span><span data-preserver-spaces=\"true\"> internal bonus and reward system.<\/span><span data-preserver-spaces=\"true\"> He <\/span><span data-preserver-spaces=\"true\">didn\u2019t<\/span><span data-preserver-spaces=\"true\"> act alone. <\/span><span data-preserver-spaces=\"true\">Seven others <\/span><span data-preserver-spaces=\"true\">helped create<\/span><span data-preserver-spaces=\"true\"> fake reward applications and <\/span><span data-preserver-spaces=\"true\">set up<\/span><span data-preserver-spaces=\"true\"> shell companies to receive the funds.<\/span> <span data-preserver-spaces=\"true\">The scheme <\/span><span data-preserver-spaces=\"true\">worked<\/span><span data-preserver-spaces=\"true\"> by sending fake payouts to fake entities, making everything <\/span><span data-preserver-spaces=\"true\">look<\/span><span data-preserver-spaces=\"true\"> legitimate on the surface. Meanwhile, <\/span><span data-preserver-spaces=\"true\">insiders were orchestrating it to siphon off real corporate cash.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Turning Company Cash into Bitcoin<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Once the money landed in the hands of the conspirators, it <\/span><span data-preserver-spaces=\"true\">didn\u2019t<\/span><span data-preserver-spaces=\"true\"> sit around for long. <\/span><span data-preserver-spaces=\"true\">It was quickly funneled<\/span><span data-preserver-spaces=\"true\"> through multiple overseas crypto exchanges and converted into Bitcoin. <\/span><span data-preserver-spaces=\"true\">To cover their tracks, the group used crypto mixers, tools that blend transactions <\/span><span data-preserver-spaces=\"true\">to <\/span><span data-preserver-spaces=\"true\">hide where<\/span><span data-preserver-spaces=\"true\"> the <\/span><span data-preserver-spaces=\"true\">money came from<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> People have long used mixers <\/span><span data-preserver-spaces=\"true\">to mask funds, but as tracking tools become more advanced, mixers are becoming less effective.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-cryptocurrency\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Best New Cryptocurrencies to Invest in 2025<\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Police Manage to Recover Most of the Bitcoin<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Despite the laundering efforts, investigators were able to trace and recover a large chunk of the stolen funds. They retrieved a<\/span><span data-preserver-spaces=\"true\">\u00a0total of 92 BTC, <\/span><span data-preserver-spaces=\"true\">worth about<\/span><span data-preserver-spaces=\"true\"> $11.7 million<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> That money has already <\/span><span data-preserver-spaces=\"true\">been returned<\/span><span data-preserver-spaces=\"true\"> to Kuaishou. <\/span><span data-preserver-spaces=\"true\">Authorities <\/span><span data-preserver-spaces=\"true\">made<\/span><span data-preserver-spaces=\"true\"> it clear that technical tricks <\/span><span data-preserver-spaces=\"true\">won\u2019t<\/span><span data-preserver-spaces=\"true\"> necessarily keep bad actors hidden, especially when investigators have <\/span><span data-preserver-spaces=\"true\">blockchain<\/span><span data-preserver-spaces=\"true\"> data and the ability to work across borders.<\/span><\/p>\n<div class=\"cpp-crypto-chart cpp-crypto-chart-99btc cpp-crypto-chart-btc\" data-coin-symbol=\"btc\" data-price-usd=\"BTC Price (USD)\" data-main-color=\"#4caf05\" data-watermark-image=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/06\/99bitcoins-logo.png\" data-chart-style=\"99btc\">\n<div class=\"cpp-chart-top-section\">\n<div class=\"cpp-chart-info-section\">\n<div class=\"cpp-chart-logo\"><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2024\/02\/26205235\/btc.svg\" alt=\"btc logo\"><\/div>\n<div class=\"cpp-chart-coin-details\">\n<div class=\"cpp-chart-labels-row\">\n<div class=\"cpp-chart-coin-name\">Bitcoin<\/div>\n<div class=\"cpp-chart-price-info\">Price<\/div>\n<div class=\"cpp-chart-market-cap\">Market Cap<\/div>\n<\/div>\n<div class=\"cpp-chart-values-row\">\n<div class=\"cpp-chart-coin-symbol\">BTC<\/div>\n<div class=\"cpp-chart-price\"><\/div>\n<div class=\"cpp-chart-market-cap-value\">$2.34T<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"cpp-chart-selectors cpp-chart-selectors-99btc\"><span class=\"cpp-chart-selector\" data-period=\"24h\">24h<\/span><span class=\"cpp-chart-selector\" data-period=\"7d\">7d<\/span><span class=\"cpp-chart-selector\" data-period=\"30d\">30d<\/span><span class=\"cpp-chart-selector\" data-period=\"1y\">1y<\/span><span class=\"cpp-chart-selector\" data-period=\"all_time\">All time<\/span><\/div>\n<\/div>\n<p><canvas id=\"cpp-chart-68882d7388baa\" class=\"cpp-chart-container cpp-chart-container-99btc\"><\/canvas><\/div>\n<h2><span data-preserver-spaces=\"true\">Sentences Handed Down to All Eight<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">All eight people involved have <\/span><span data-preserver-spaces=\"true\">been convicted<\/span><span data-preserver-spaces=\"true\">. Feng received a 14-year prison sentence, the harshest of the group. <\/span><span data-preserver-spaces=\"true\">The others <\/span><span data-preserver-spaces=\"true\">got between<\/span><span data-preserver-spaces=\"true\"> three <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> 14 years, depending on their level of involvement.<\/span><span data-preserver-spaces=\"true\"> Along with prison time, <\/span><span data-preserver-spaces=\"true\">each was hit<\/span><span data-preserver-spaces=\"true\"> with financial penalties. This case is unusual because employees inside the company who had access and knew how to game the system carried it out, not external hackers or criminal rings.<\/span><\/p>\n<p><strong>DISCOVER: <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">20+ Next Crypto to Explode in 2025<\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">What This Says About <\/span><span data-preserver-spaces=\"true\">China\u2019s<\/span><span data-preserver-spaces=\"true\"> Crypto Enforcement<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">China has been cracking down on <\/span><span data-preserver-spaces=\"true\">crypto<\/span><span data-preserver-spaces=\"true\"> since 2021, but this case takes things further.<\/span><span data-preserver-spaces=\"true\"> It shows that enforcement <\/span><span data-preserver-spaces=\"true\">is not just focused<\/span><span data-preserver-spaces=\"true\"> on traders or miners, but also on insiders who use crypto tools to steal and hide money. Although authorities ban <\/span><span data-preserver-spaces=\"true\">crypto trading, underground activity <\/span><span data-preserver-spaces=\"true\">continues<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">Cases like this one suggest authorities are now looking much <\/span><span data-preserver-spaces=\"true\">closer<\/span><span data-preserver-spaces=\"true\">\u00a0at how people inside companies might be exploiting these tools <\/span><span data-preserver-spaces=\"true\">too<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Lessons for Companies and Crypto Platforms<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">This<\/span> <span data-preserver-spaces=\"true\">wasn\u2019t<\/span><span data-preserver-spaces=\"true\"> a loophole in code. It was a gap in oversight. Weak internal controls in i<\/span><span data-preserver-spaces=\"true\">ncentive programs<\/span><span data-preserver-spaces=\"true\">\u00a0created <\/span><span data-preserver-spaces=\"true\">the<\/span><span data-preserver-spaces=\"true\"> opening, and <\/span><span data-preserver-spaces=\"true\">no one noticed<\/span><span data-preserver-spaces=\"true\"> until millions were gone.<\/span> <span data-preserver-spaces=\"true\">That\u2019s<\/span><span data-preserver-spaces=\"true\"> what compliance experts are now warning against. Firms that handle large payouts or tokens need tighter systems to monitor who can access what, and how.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Looking Ahead<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In the aftermath, other Chinese tech companies <\/span><span data-preserver-spaces=\"true\">are expected<\/span><span data-preserver-spaces=\"true\"> to <\/span><span data-preserver-spaces=\"true\">revisit<\/span><span data-preserver-spaces=\"true\"> their compliance protocols. <\/span><span data-preserver-spaces=\"true\">Regulators may also introduce new rules <\/span><span data-preserver-spaces=\"true\">for handling <\/span><span data-preserver-spaces=\"true\">recovered crypto assets.<\/span><span data-preserver-spaces=\"true\"> As the lines between corporate finance and digital assets continue to blur, stories like this are no longer rare exceptions. They are becoming part of the risk landscape. The $20 million Bitcoin case prompted Chinese companies to tighten their internal bonus and reward systems.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-crypto-to-explode\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n<p><strong><a class=\"editor-rtfLink\" href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Authorities uncovered a $20 million Bitcoin laundering scheme inside Chinese tech giant Kuaishou, led by an insider and seven accomplices.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The group used fake bonus applications and shell companies to steal funds, then laundered the money through crypto exchanges and mixers.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Authorities recovered 92 BTC, worth around $11.7 million, showing that mixers and cross-border tactics are no longer foolproof.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        The court convicted all eight conspirators, sentencing the ringleader to 14 years in prison and others to multiple years behind bars.    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        This case signals China\u2019s growing focus on internal crypto crime, pushing companies to tighten oversight of reward and finance systems.    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/china-busts-20m-bitcoin-laundering-ring-inside-tech-giant\/\">$20 Million Bitcoin Laundering Ring Busted in China<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Chinese authorities uncovered a Bitcoin laundering operation that ran out of a major tech company. The scheme, worth nearly $20 million, was uncovered inside Kuaishou, one of China\u2019s largest short-video platforms. The investigation was led by officials in Beijing\u2019s Haidian District and has quickly become one of the country\u2019s biggest corporate crypto scandals in years. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-39237","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/39237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39237"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/39237\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}