Two former Chinese bank executives allegedly laundered $248 million through crypto: report
Quick Take
- A local Chinese bank uncovered an alleged embezzlement and money laundering scheme involving its two former executives.
- The laundered funds totaled 1.8 billion yuan ($248 million), according to a report.
A local Chinese bank uncovered an embezzlement and money laundering scheme involving its two former executives, a former shareholder, and other suspects, using cryptocurrency to launder funds.
The report noted that the illegally converted funds amounted to 1.8 billion yuan ($248 million), according to a report by Chinese financial news outlet The National Business Daily.
A court document showed that a 44-year-old suspect surnamed Chen had helped the former executives of Bank of Huludao, a commercial bank in Northeast China, to allegedly launder at least 250 million yuan ($34.4 million) through his bank accounts, the report added.
In August 2020, according to a report, Li Yulin, the former party secretary of Bank of Huludao, and Li Xiaodong, its former acting president, along with two other suspects, were allegedly involved in embezzling 2.6 billion yuan by purportedly resolving non-performing assets. The following month, it is alleged that these suspects had illegally converted over 1.8 billion yuan into foreign currency and transferred these funds to company bank accounts in Hong Kong under their control.
Subsequently, in September and October 2020, these individuals engaged in purchasing cryptocurrencies through WeChat groups, including one named “Longmen Inn,” and then sold the cryptocurrencies abroad using other vendors. The proceeds were converted into U.S. dollars and sent to bank accounts owned by Hong Kong companies, as detailed in the report.
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. The cases concerning the other executives’ alleged misconduct were addressed in separate legal proceedings.
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