July 31, 2025
By Anjali Kochhar
What started as an internal theft at a Beijing tech firm has now unraveled into one of China’s most high-profile crypto laundering cases. In a country that has banned crypto trading altogether, criminals are still finding loopholes and this time, it cost a company over US$20 million.
According to the South China Morning Post, the Beijing No.1 Intermediate People’s Court has sentenced two key individuals to more than 11 years in prison for embezzling funds from their employer and laundering them through cryptocurrency channels. The elaborate scheme involved transferring stolen money into digital assets like Tether (USDT), routing it through multiple wallets and over-the-counter (OTC) brokers to mask the trail.
Despite China’s blanket ban on crypto activities, the case reveals how digital currencies continue to be exploited by bad actors. The court documents detailed how the accused bypassed capital controls by using crypto exchanges and cross-border transfers, showcasing the vulnerabilities that still exist within the system.
The use of OTC brokers often unregulated made it even harder to trace the funds, pointing to a need for tighter monitoring of crypto transactions. These brokers helped convert stolen funds into stablecoins, which were then moved internationally through decentralised platforms.
China has long maintained a zero-tolerance policy on crypto trading and mining, branding it illegal since 2021. However, this case demonstrates that even with tough regulations, enforcement remains a challenge, especially when crypto is used to facilitate white-collar crime.
This conviction not only marks a significant milestone in China’s ongoing fight against financial fraud but also sets a precedent for how the judicial system handles blockchain-enabled crimes. It sends a strong message to those misusing crypto that technological complexity won’t shield them from accountability.
As blockchain continues to grow globally, this case serves as a reminder that digital finance, if left unchecked, can be weaponised for illicit gain. China’s legal action reflects a broader global effort to tighten surveillance on crypto transactions and hold criminals accountable regardless of the tech they use.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
