Details of a corruption case involving a reward fund of 140 million yuan on a short video platform in Beijing have been disclosed, revealing the use of Virtual Money for Money Laundering and other methods to transfer illicit funds.

On July 28, a former employee of a short video platform company in Haidian District, Beijing, named Feng, took advantage of his position to collude with external suppliers. By exploiting loopholes in the reserved rewards policy and leaking internal data, he illegally embezzled 140 million yuan in rewards from the company. The involved personnel also transferred the embezzled funds through methods such as registering shell companies and laundering virtual money. Among them, Feng instructed Tang and Yang to use 8 different overseas virtual money trading platforms to exchange the embezzled huge sums of money for Bitcoin and other virtual currencies in batches. To completely sever the tracing chain of the funds, Feng's gang employed a more covert method called "mixing coins," which obfuscates the encryption trading paths through technical means to achieve "privacy" protection. Faced with evidence, Feng's gang had to surrender more than 90 hidden Bitcoins, allowing the company to recover part of its losses. In the end, Feng and 6 others were sentenced by the Haidian District People's Court to prison terms ranging from fourteen years and six months to three years for the crime of embezzlement, all with corresponding fines. The judgment has now taken effect.