China Jails Official for Bitcoin Bribery
China Cracks Down on Bitcoin-Linked Corruption
A Beijing court sentenced Hao Gang, a former deputy director of the Beijing Financial Bureau, to 11 years in prison for bribery and Bitcoin-related money laundering. This follows a two-year investigation revealing he accepted tens of millions of yuan in bribes to help Bitcoin mining firms navigate regulatory hurdles and aided a senior executive in evading travel restrictions.
The court initially handed down separate sentences—eight years for bribery and four for money laundering—before merging them into the 11-year term. Gang also received a RMB 1.3 million ($164,662) fine, and his illicit earnings were confiscated.
Impact and Implications
This conviction underscores China's firm stance against financial misconduct involving Bitcoin. It's a significant development following last year's life sentence given to a government worker for selling classified information in exchange for cryptocurrency. This case, along with increased restrictions on illegal crypto transactions, demonstrates China's ongoing efforts to regulate the digital currency space.
However, China's approach to cryptocurrency regulation remains complex. While some rulings classify crypto trading as gambling, others acknowledge digital assets as legal property, reflecting the government's ongoing struggle to balance financial stability with the evolving digital economy.
Codeum, a blockchain security and development platform, offers comprehensive services including smart contract audits, KYC verification, custom smart contract and DApp development, tokenomics and security consultation, and partnerships with launchpads and crypto agencies. These services help projects navigate the complexities of the blockchain space and ensure robust security and regulatory compliance.
