Bitcoin News Today: Beijing Haidian Court Sentences Former Employee to 14 Years for 140M Yuan Bitcoin Fraud, Coin Mixing Laundering.

A former employee of a short video platform in Beijing has been sentenced for orchestrating a 140 million yuan (approximately $19 million) fraud scheme involving Bitcoin and cryptocurrency laundering. Feng, who held authority over service provider approvals and incentive policies, colluded with external partners to exploit system loopholes, using forged documents to siphon company funds. The stolen money was converted into Bitcoin through overseas exchanges and further obscured via "coin mixing" techniques, leaving over 90 Bitcoins seized by authorities as partial compensation for the company’s losses. Feng and seven co-defendants received prison terms ranging from three to 14 years and six months, with fines, after being convicted of embezzlement through abuse of office. The verdict, handed by the Beijing Haidian District People’s Court, marks a rare public acknowledgment of cryptocurrency-related misconduct in China [1].

The case highlights the persistence of illicit crypto activities despite China’s strict bans on cryptocurrency trading and mining. Feng’s network established shell companies to conceal the fraud, routing funds through secret accounts controlled by accomplices. The use of Bitcoin, combined with coin mixing—a method to obfuscate transaction trails—demonstrated the challenges regulators face in tracking digital assets. While the prosecution emphasized the finality of the court’s decision, the incident underscores the tension between state-enforced financial control and the decentralized nature of cryptocurrencies [1].

Chinese state-linked media, including the People’s Daily, reported the case as part of broader efforts to reinforce regulatory authority over digital assets. The scandal emerged amid heightened global scrutiny of cryptocurrencies, coinciding with unrelated reports on Russia and China advancing gold-backed financial systems to reduce reliance on Western economies [2]. However, the Bitcoin case is distinct in its focus on enforcement challenges within an underground market. Analysts note that despite repeated crackdowns, offshore platforms and domestic black markets have sustained demand for cryptocurrencies in China [1].

The public disclosure of the case contrasts with historical approaches, where state media typically avoided detailed reporting on illegal crypto activities. This shift may signal a strategy to use public awareness as a deterrent, aligning with China’s broader emphasis on financial security and capital control. For investors, the incident serves as a reminder of the risks inherent in jurisdictions with stringent crypto regulations, where sudden enforcement actions can disrupt markets and erode confidence [1].

Sources:

[1] [Bitcoin Scandal Erupts in China – Chinese State Newspaper Reports] https://coinmarketcap.com/community/articles/68865e8d6eed8e5846f95a2c/

[2] [China urges global consensus on balancing AI ...] https://www.yahoo.com/news/articles/china-urges-global-consensus-balancing-042026536.html