Chinese Bank Executives Involved in $248 Million Crypto Money Laundering Scheme
A case of embezzlement and money laundering involving crypto has come to light at the Bank of Huludao, a commercial Chinese bank
According to a report by The National Business Daily, a Chinese financial news outlet, two former executives of the bank allegedly misappropriated funds and used crypto to launder the money through Hong Kong-based companies.
Key points:
- Li Yulin and Li Xiaodong were allegedly involved in embezzling 2.6 billion yuan ($359 million) in August 2020.
- The suspects allegedly converted over 1.8 billion yuan ($248 million) into foreign currency and transferred the funds to Hong Kong company accounts.
- Cryptocurrencies were purchased through WeChat groups, including “Longmen Inn,” and sold abroad to launder the money.
- A 44-year-old suspect surnamed Chen helped launder at least 250 million yuan ($34.4 million) through his bank accounts.
- Chen was found guilty of money laundering, sentenced to 2 years and 3 months in prison, and fined 2 million yuan.
The scheme began in August 2020 when Li Yulin and Li Xiaodong, along with two other suspects, allegedly embezzled 2.6 billion yuan.
The following month, the suspects allegedly converted over 1.8 billion yuan into foreign currency and transferred the funds to Hong Kong company accounts under their control.
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Chinese officials used crypto to launder the money
To launder the money, the individuals involved in the scheme purchased crypto through various WeChat groups. The assets were then sold abroad, converted and sent to bank accounts owned by the Hong Kong companies.
A court document revealed that a 44-year-old suspect surnamed Chen played a crucial role in the money laundering operation. Chen allegedly helped the former bank executives launder at least 250 million yuan through his personal bank accounts.
The court found Chen guilty of money laundering and sentenced him to 2 years and 3 months in prison. This is in addition to imposing a hefty fine of 2 million yuan.
