A Beijing court in Haidian District handed down prison terms to eight former employees of Kuaishou, China’s second-largest short video platform, after they stole 140 million yuan (about $20 million) from the company.
The group converted the funds into Bitcoin on eight different overseas exchanges, used coin-mixing services to hide the trail, and then funnelled the money back into Chinese bank accounts.
The fraud unfolded over several years as staff abused their roles in subsidy approval and policy design to steal and launder company assets.
Embezzlement Scheme Exposed
Feng, a key manager in charge of approving service providers and setting bonus rules, held all the power over who qualified for subsidies. He quietly left loopholes in each new reward plan.
He then leaked strict internal data to outside suppliers, Tang and Yang. With those figures, the suppliers submitted fake claims. In a single year, the trio siphoned off 140 million yuan intended for service providers and operators.
To collect the money, Yang set up multiple shell companies. Each shell firm existed only to receive payments from Kuaishou. Once the “rewards” hit those accounts, the cash moved in layers until it reached secret accounts controlled by the ring.
Virtual Currency Laundering
Next came the task of hiding the stolen funds. Following Feng’s orders, Tang and Yang used eight overseas crypto exchanges to swap batches of yuan for Bitcoin.
They then used specialised services to mix their coins, breaking the link between the original transfers and the final wallets. After mixing, some of the Bitcoin was sold again for yuan through hidden channels.
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Those funds flowed back into personal and corporate accounts managed by Feng, Tang, and Yang. In all, they created a fully secretive, cross‑border laundering loop.
Prosecutors Build the Case
Prosecutor Li Tao of the Haidian District Science and Technology Crime Team led the investigation. He relied on an electronic data review unit to track information flows, data flows, and capital flows. This method lets investigators piece together every step of the crime.
In the end, the team recovered more than 90 Bitcoins that had been hidden. The evidence left no doubt about how the money was stolen, laundered, and divided.
The Haidian District People’s Court found Feng guilty of occupational embezzlement. He received 14 years and six months in prison. Seven co‑conspirators received sentences ranging from 3 years to 13 years. All eight must pay heavy fines, and the verdict is now final.
Evolving Risks in Digital Corruption
“At present, corruption in the private sector shows new traits,” said Li Tao. “We see small officials with big power. We see virtual currency used for money laundering. And we see weak corporate defences.”
A recent whitepaper by the Haidian District People’s Procuratorate reviewed 1,253 commercial corruption cases from 2020 to 2024. It found that many schemes are now premeditated and highly coordinated.
Criminals form “offensive and defensive alliances” to dodge detection. They use tech to mix coins. They strike across borders.
Sun Peng, director of the second procuratorial department, noted that China’s push for a high‑level socialist market economy now codifies anti‑corruption in private firms.
Yet the rise of the digital economy raises fresh challenges. As businesses chase user growth and data insights, managers gain more unchecked control, which can lead to larger frauds.
This Kuaishou case shows how corruption has grown smarter in the digital age. It also highlights the need for tighter checks inside companies. Stronger internal controls, longer approval chains, and regular audits can help stop fraud before it starts.