YEREVAN (CoinChapter.com) — A Beijing court sentenced Hao Gang, former Beijing Financial Bureau deputy director, to 11 years in prison for bribery and Bitcoin-related money laundering. Authorities found that he accepted millions in bribes to help Bitcoin mining firms and assisted a senior executive in evading travel restrictions.
Hao Gang Bitcoin Case. Source: Caixin Finance
Hao Gang Took Millions to Shield Bitcoin Mining Firms
The court issued its ruling on Feb. 6 following a two-year investigation. Officials discovered that Hao Gang accepted tens of millions of yuan in bribes from Bitcoin mining firms struggling with China’s crypto regulations.
Reports also state that Hao Gang helped a mining company executive evade travel bans in exchange for illicit payments. Initially, the court imposed separate sentences—eight years for bribery and four years for money laundering—but later merged them into an 11-year sentence.
Additionally, the court fined Hao Gang RMB 1.3 million ($164,662). Authorities confiscated his illegally obtained funds, transferring them to the state treasury.
Before his arrest, Hao Gang played a significant role in Beijing’s financial sector. His conviction follows China’s ongoing crackdown on financial misconduct involving Bitcoin and other cryptocurrency activities.
This sentencing comes after another high-profile case last year.In November 2024, Wang Moumou, a former Chinese official, was sentenced to life imprisonment for selling classified state secrets to a foreign intelligence agency, reportedly the British MI6. Investigations revealed that Wang received over 1 million yuan in cryptocurrency in exchange for providing the agency with sensitive government documents and photographs.
Authorities stated that Wang turned to espionage after incurring significant financial losses in cryptocurrency trading. To address his debts, Wang established contact with foreign agents and agreed to supply them with restricted information.
Espionage and Crypto Losses. Source: Ministry of National Security
Following his arrest, Chinese law enforcement confiscated the crypto assets he received as payment.
Chinese regulators continue to tighten restrictions on cryptocurrency transactions, reflecting the government’s position against crypto investments.
China’s Crypto Regulations Remain Inconsistent
Despite strict enforcement, China’s crypto laws remain contradictory. In a recent case, the People’s Court of Pingjiang County in Hunan Province sentenced several employees of the cryptocurrency exchange BKEX for facilitating illegal gambling through crypto futures trading. The court determined that BKEX’s contract trading platform allowed users to place high-leverage bets on cryptocurrency price movements, classifying these activities as “opening a casino” under Chinese law.
This ruling underscores the ongoing tension in China’s regulatory environment regarding cryptocurrencies. While some courts recognize digital assets as legal property, others equate certain crypto trading activities with illegal gambling, leading to inconsistent legal interpretations.
This legal uncertainty shows China’s struggle to maintain financial control while addressing the rise of digital assets. Crypto-related cases continue to shape China’s evolving stance on blockchain and cryptocurrency regulations.
