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In a startling development, former executives Li Yulin and Li Xiaodong of Bank of Huludao have been implicated in a sophisticated money laundering scheme involving cryptocurrencies, amounting to $248 million. The allegations suggest that the duo, alongside a former shareholder and several accomplices, embezzled approximately 2.6 billion yuan in the first month of their joining. 
The scandal came to light after a local Chinese bank flagged suspicious transactions involving the executives, a former shareholder, and several accomplices. 
According to a judgment document, Li Yulin, the former Party Secretary, and Li Xiaodong, the former acting president, conspired with Duan Hongtao, the bank’s major shareholder, and Zhou Zhilong, to divert funds under the guise of resolving non-performing assets. 
The Alleged Scheme Unveiled 
The scam reportedly began in August 2020 when the accused officials purportedly converted approximately 1.8 billion yuan into foreign currency. These funds were then funneled into Hong Kong-based company accounts controlled by the suspects. 
In subsequent months, transactions were conducted through various channels, including cryptocurrency purchases via WeChat groups like “Longmen Inn.” The cryptocurrencies were later sold through offshore vendors, with the proceeds converted into U.S. dollars and deposited into Hong Kong bank accounts. 
Legal Proceedings and Sentencing 
Prompt legal consequences ensued, resulting in the conviction of Chen, one of the accomplices, who aided in the money laundering using his bank accounts. Chen aged 44, was sentenced to 2 years and 3 months in prison and was also fined 2 million yuan for his role in the illegal operation. 
Meanwhile, legal proceedings are in progress to address the alleged misconduct of former bank employees associated with the scandal. 
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Former Chinese Bank Officials Charged in $248M Crypto Scandal

The Crypto Times

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