- Yao Qian used hardware wallets and shell accounts to hide crypto bribes, but blockchain records enabled investigators to trace funds.
- Authorities linked ETH transfers to property purchases, including a Beijing villa funded through crypto-exchange proceeds.
- An ICO case showed Yao received 2,000 ETH for favors, leading to expulsion from the Party and criminal prosecution.
An investigation in China has revealed details of a corruption case involving Yao Qian, a senior former regulator. The investigation examined allegations tied to cryptocurrency bribes and abuse of authority. Yao, a former digital currency official, now faces prosecution following a multi-agency investigation.
Documentary Details Crypto-Based Corruption Methods
On January 14, Chinese state television aired the fourth episode of “Never Stop, Never Back Down.” The episode focused on technology-enabled corruption cases. It highlighted how officials used cryptocurrencies to conceal illicit payments.
According to the documentary, investigators seized several hardware wallets during the probe. These devices held cryptocurrency valued at tens of millions of yuan. Officials said the assets appeared small but stored significant digital wealth.
Yao Qian appeared in the program and acknowledged awareness of wrongdoing. He said he believed digital methods would complicate evidence discovery. Investigators countered that blockchain records remained traceable.
Ethereum Transfers and Shell Accounts
Authorities placed Yao Qian under investigation in April 2024. The task force included the Central Commission for Discipline Inspection and local supervisors in Guangdong. Investigators examined Yao’s digital currency background due to his long industry involvement.
Officials found hardware wallets in Yao’s office drawer. They also identified shell bank accounts controlled by Yao. One 10 million yuan transfer traced back to a cryptocurrency exchange account.
Investigators linked those funds to property purchases in Beijing. The villa cost over 20 million yuan and used shell account funds. Additional transfers totaling 12 million yuan later surfaced.
ICO Bribe Linked to 20,000 ETH Token Raise
Further inquiry revealed involvement by businessman Wang and intermediary Jiang Guoqing. Jiang served as Yao’s subordinate and assisted multiple transactions. He helped route cryptocurrency transfers through intermediary wallet addresses.
In 2018, Jiang connected Yao with a businessman surnamed Zhang. Yao then assisted with a token issuance and exchange listing. The project raised 20,000 Ethereum through an ICO.
Zhang later transferred 2,000 Ethereum to Yao as payment. Investigators traced 370 Ethereum sold in 2021 for roughly 10 million yuan. Yao admitted violations after blockchain analysis confirmed the transaction chain.
Authorities expelled Yao from the Communist Party in November 2024. They dismissed him from public office and transferred the case for prosecution.