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.

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Filed under: Bitcoin - @ July 27, 2025 8:16 pm