A local Chinese bank has uncovered an alleged embezzlement and money laundering scheme involving two of its former executives, a former shareholder, and other suspects. The report suggests that the laundered funds totaled a staggering 1.8 billion yuan ($248 million), which were converted into cryptocurrencies and then sold abroad through various vendors.
Embezzlement and Money Laundering Scheme
According to a report by the Chinese financial news outlet The National Business Daily, the alleged scheme involved the former party secretary of Bank of Huludao, Li Yulin, and its former acting president, Li Xiaodong, along with two other suspects. In August 2020, these individuals were claimed to have embezzled 2.6 billion yuan by purportedly resolving non-performing assets.
The following month, the suspects are said to have illegally converted over 1.8 billion yuan into foreign currency and transferred the funds to company bank accounts in Hong Kong under their control. Subsequently, in September and October 2020, they allegedly engaged in purchasing cryptocurrencies through WeChat groups, including one named “Longmen Inn,” and then sold the cryptocurrencies abroad using other vendors. The proceeds were then converted into U.S. dollars and sent to bank accounts owned by Hong Kong companies.
Legal Proceedings
The court found a 44-year-old suspect, surnamed Chen, guilty of money laundering and sentenced him to 2 years and 3 months in prison, in addition to imposing a fine of 2 million yuan. The cases concerning the other executives’ alleged misconduct were addressed in separate legal proceedings.
“The court found Chen guilty of money laundering and sentenced him to 2 years and 3 months in prison, in addition to imposing a fine of 2 million yuan.”
Conclusion
This case highlights the growing concerns around the use of cryptocurrencies for illicit activities, such as money laundering. The involvement of former bank executives in such a large-scale scheme underscores the need for stricter regulations and greater scrutiny in the crypto industry.
