Ex-Government Official in China Sentenced for Bitcoin Money Laundering

A former senior official in Beijing's financial sector has been sentenced to 11 years in prison after being found guilty of corruption and laundering money through Bitcoin transactions.

The case underscores China’s continued efforts to crack down on financial crimes linked to cryptocurrency.

Beijing Official Sentenced in Bitcoin-Linked Corruption Case

After a two-year investigation, a Beijing court ruled that Hao Gang, previously a deputy director at the Beijing Financial Bureau, had accepted substantial bribes to assist Bitcoin mining operations navigating regulatory hurdles. The court also found that he facilitated the illegal movement of a high-ranking mining executive, bypassing travel restrictions in return for illicit payments.

The initial sentencing included separate penalties—eight years for bribery and four years for money laundering. However, the court later merged them into a single 11-year prison term. Along with his jail sentence, Gang was fined 1.3 million yuan (approximately $165,000), and his unlawfully obtained funds were seized and transferred to the state.

Before his downfall, Gang played a pivotal role in shaping Beijing’s financial landscape, making his conviction a significant moment in China’s broader efforts to root out corruption tied to digital assets. His sentencing follows a trend of increasingly strict measures against financial misconduct.

China’s Tough Stance on Crypto and Financial Crimes

This case isn’t an isolated incident. Last year, another government employee was sentenced to life in prison for selling classified intelligence to a foreign entity after suffering severe losses in the crypto market. The individual reportedly accepted digital assets in exchange for state secrets.

Over the past few years, China has intensified its scrutiny of cryptocurrency-related activities, aiming to limit financial risks associated with speculative investments. However, the country’s regulatory stance remains inconsistent. While one ruling equated crypto trading to gambling, a previous court decision classified digital assets as legal property.

This legal ambiguity highlights the Chinese government’s challenge in balancing financial control with the evolving digital economy.