The post Chinese Exec Jailed for Laundering $19.5M Through Crypto Mixers, Exchanges appeared on BitcoinEthereumNews.com.

In brief Authorities recovered over 90 BTC, valued at about $11 million. Prosecutors said the funds were moved through eight offshore exchanges and obscured using coin mixing tools. The case was included in a government report highlighting the rise of crypto-enabled fraud in China’s tech sector. A Beijing court sentenced a former technology firm executive to 14 years and six months in prison on Tuesday for embezzling 140 million yuan (US$19.5 million) and laundering the funds through crypto. The executive, surnamed Feng, held responsibility for approving incentive payouts at a short video platform. Prosecutors said he colluded with external vendors to submit false claims and reroute corporate funds into accounts he controlled. The money was then converted into Bitcoin and other digital assets across eight overseas trading platforms. The case is marked by three features: “petty officials committing major corruption, laundering through virtual currency, and weak enterprise risk awareness,” prosecutor Li Tao explained to the local paper People’s Daily, with the report first cited by South China Morning Post.  To obscure the origin of the funds, Feng and his associates employed coin mixing techniques: tools that obfuscate blockchain transaction trails by pooling and redistributing crypto assets. Authorities traced the flow and ultimately recovered over 90 Bitcoin, worth almost $11 million at current prices. “Tracing funds through coin mixing significantly increases complexity, but does not guarantee full anonymity,” Dan Dadybayo, research and strategy lead at Unstoppable Wallet, told Decrypt. Current blockchain analytics tools “leverage pattern recognition, statistical clustering, and timing analysis,” Dadybayo explained. Through these, investigators could “partially or even fully reconstruct flows in many cases,” though those depend on the “size of the anonymity set and behavior of the actors involved,” he added. Prosecutors said their investigation used advanced electronic data review to trace the flow of funds, detailing…

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Filed under: News - @ July 30, 2025 6:27 pm