A recent case involving the Huludao Bank in China has exposed a complex corruption and money laundering scheme carried out by two former executives using cryptocurrency.
The scandal, involving the illegal transfer of 180 million yuan (approximately 24.8 billion US dollars), revealed serious flaws in the financial institution.
According to reports revealed to Daily Business News reporters, former senior executives Li Yulin and Li Xiaodong embezzled funds with the intention of liquidating bad debts. They converted it into foreign currency and transferred it to accounts of their companies controlled in Hong Kong. The money was then invested in cryptocurrency through platforms like WeChat or “Longmen Inn.”
These digital assets were later sold overseas, and then, taking advantage of regulatory loopholes applicable to cryptocurrency, the profits were laundered back into some Hong Kong bank accounts through US dollar transactions.
Read more:
How cryptocurrency is helping the US overcome its debt crisis
The trial has already begun, with one accomplice Chen sentenced to over two years in prison and fined for money laundering part of the proceeds.
