January 19, 2026
China’s sweeping anti-corruption drive has pulled in a key figure behind the country’s digital currency ambitions. Yao Qian, one of the chief architects of China’s digital yuan, has been accused of accepting more than $8 million worth of cryptocurrency bribes while holding senior regulatory positions, according to state-run media reports.
Yao previously served as the head of the Digital Currency Research Institute at the People’s Bank of China and later worked in a senior role at the China Securities Regulatory Commission. Investigators allege that during his tenure, Yao abused his authority by offering regulatory support and policy access to business executives in exchange for illicit payments made in digital assets.
Authorities revealed that Yao received large cryptocurrency transfers, including thousands of Ethereum tokens, from individuals seeking favourable treatment for blockchain-related projects. At the time of the transactions, the digital assets were worth tens of millions of yuan. Ironically, the same blockchain technology Yao helped promote for the development of the digital yuan was later used to trace the illicit funds back to him.
Investigators found multiple hardware wallets hidden in Yao’s office, disguised as ordinary USB devices, which allegedly contained millions of dollars in digital assets. Despite efforts to conceal the funds using complex transaction paths and third-party intermediaries, forensic blockchain analysis allowed authorities to reconstruct the money trail with precision.
The investigation also uncovered the use of shell companies and accounts belonging to relatives to disguise the movement of funds. Prosecutors linked the crypto bribes to real-world assets, including the purchase of a luxury villa in Beijing valued at more than 20 million yuan. These findings were supported by cross-checking blockchain data with banking and property records.
A former subordinate, identified as a key middleman in the scheme, reportedly helped coordinate transfers between businessmen and Yao. In one instance dating back to 2018, the intermediary facilitated a transaction involving thousands of Ethereum tokens in return for regulatory assistance tied to a token issuance project.
Beyond crypto payments, Yao is also accused of accepting luxury gifts, manipulating recruitment processes, and interfering in procurement decisions. Chinese authorities expelled him from the Communist Party in late 2024, clearing the way for criminal prosecution.
Despite the scandal, officials have emphasised that China’s digital yuan project will continue, with regulators pushing ahead on adoption and innovation while reinforcing anti-corruption oversight across the financial system.
