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China Jails Ex-Regulator Hao Gang for Bitcoin Corruption in Landmark Case
On February 6, a Beijing court sentenced former Beijing Financial Bureau deputy director Hao Gang to 11 years in prison for bribery and Bitcoin-related money laundering. The landmark case highlights China’s ongoing efforts to crack down on financial misconduct involving digital assets.
According to reports, Hao Gang accepted tens of millions of yuan in bribes from struggling Bitcoin mining firms to help them navigate the country’s strict crypto regulations. Furthermore, he assisted a senior executive in evading travel restrictions by accepting illicit payments. Initially, the court handed out separate sentences for bribery and money laundering, but later merged them into an 11-year sentence. Hao Gang was also fined RMB 1.3 million ($164,662) and had his illegally obtained funds confiscated and transferred to the state treasury.
Hao Gang’s conviction comes amid China’s intensified crackdown on financial misconduct involving Bitcoin and other cryptocurrency activities. His case follows another high-profile prosecution in November last year, where a former Chinese official was sentenced to life imprisonment for selling classified state secrets to foreign intelligence agencies in exchange for over 1 million yuan in cryptocurrency.
The Chinese government has long maintained a strict stance against cryptocurrency investments, with authorities seizing on the opportunity to curb the growth of digital assets. Despite efforts to tighten restrictions, China’s crypto laws remain shrouded in uncertainty. In a recent case, the People’s Court of Pingjiang County in Hunan Province sentenced several employees of cryptocurrency exchange BKEX for facilitating illegal gambling through crypto futures trading.
China’s regulatory environment remains inconsistent, with some courts recognizing digital assets as legal property while others equate certain crypto trading activities with illegal gambling. This ambiguity has led to ongoing tensions within the country’s financial sector.
Hao Gang’s sentencing is a stark reminder of China’s commitment to curbing corruption and maintaining control over its financial markets.
Source: coinchapter.com
