A major cryptocurrency money laundering and embezzlement scandal has emerged at the Bank of Huludao, a commercial bank in China.
The National Business Daily reports that two former bank executives are at the center of the scheme. Li Yulin and Li Xiaodong are accused of misappropriating funds and laundering them through Hong Kong companies using cryptocurrency.
Key Takeaways:
- Li Yulin and Li Xiaodong allegedly embezzled 2.6 billion yuan ($359 million) in August 2020.
- They reportedly converted over 1.8 billion yuan ($248 million) into foreign currency.
- CEOs transferred funds to Hong Kong company accounts.
- They allegedly bought cryptocurrencies via WeChat groups and sold them abroad to launder the money.
- A 44-year-old suspect, Chen, laundered at least 250 million yuan ($34.4 million) through his accounts.
- Chen received a 2-year and 3-month prison sentence and a fine of 2 million yuan.
The scheme began in August 2020, with Li Yulin and Li Xiaodong embezzling 2.6 billion yuan. By September, they had converted 1.8 billion yuan into foreign currency, transferring the funds to Hong Kong accounts they controlled.
To launder the money, the suspects used WeChat groups to purchase cryptocurrencies. After that, they sold them abroad and transferred the proceeds to Hong Kong company accounts.
Court documents reveal Chen’s crucial role in the operation. He helped launder 250 million yuan through his personal accounts. The court then found Chen guilty and sentenced him to prison, along with a substantial fine.