Senior Bank Officials In China Do Crypto Money Laundering Worth IDR563 Billion

JAKARTA - Senior bank officials in China have been accused of involvement in an astonishing number of cryptocurrency laundering schemes that have reached billions of yuan. The court documents recently revealed suggest that Chen, a 44-year-old suspect, is suspected of helping to launder at least 250 million yuan (around Rp563 billion) through his personal bank account to support the former bank executive.

A report from the National Business Daily, a leading financial news source in China, revealed that a former executive from Bank Huludao in the Northeast of China was involved in this case along with several other people. The report reveals that about 1.8 billion yuan (approximately IDR 4 trillion) were taken from the bank in a complicated and well-planned operation.

According to the same report from the National Business Daily, the suspects are suspected of carrying out their crypto fraud schemes carefully. In August 2020, Li Yulin, former party secretary of Bank Huludao, and Li Xiaodong, the bank's interim president, along with two others, were accused of embezzling 2.6 billion yuan (approximately IDR 5.8 trillion) by manipulating non-performing assets.

After allegedly committing massive embezzlement, the report stated that they were trying to cover their tracks in a cunning manner. In September 2020, they allegedly converted more than 1.8 billion yuan into foreign currency and transferred the money to the company's bank account in Hong Kong they controlled.

Between September and October 2020, the suspects allegedly bought crypto assets through the WeChat group, including one called Longmen Inn. They reportedly sold the crypto assets overseas and converted the proceeds into US dollars (USD), which were then deposited into bank accounts controlled by companies in Hong Kong involved in this scheme.

Chen, who is considered the mastermind behind this money laundering scheme, has been sentenced to 2 years and 3 months in prison and a fine of 2 million yuan (approximately IDR 4.5 billion). Meanwhile, the legal process against former bank executives and other parties involved is still ongoing.