CCTV investigates virtual currency corruption chain: How tens of millions of ETH are concealed as RMB assets

NFTArchaeologis · 2026-01-21T17:14:42+00:00

CCTV anti-corruption documentary exposes that former China Securities Regulatory Commission official Yao Qian engaged in large-scale corruption using virtual currencies, hiding illegal funds worth tens of millions of yuan. Yao Qian used hardware wallets and shell accounts to transfer funds, and raised a large amount of Ether through ICO fundraising, ultimately converting virtual assets into cash to purchase luxury homes in Beijing. This case serves as a warning that anti-corruption efforts need to upgrade technological methods and strengthen monitoring of virtual assets.

NFTArchaeologis

2026-01-21 17:14:42

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CCTV Anti-Corruption Special Episode 4 “Technology Empowers Anti-Corruption” recently exposed a shocking case—Yao Qian, former Director of the Information Center of the China Securities Regulatory Commission and the first Director of the Digital Currency Research Institute, used virtual currencies to conduct large-scale corruption. This case reveals how, in the era of digital assets, corrupt officials utilize emerging technological means to hide illegal gains, involving illegal fund flows of hundreds of millions of RMB.

Hardware Wallets and Masked Accounts: Technological Tools for Anonymity and Concealment

Investigations show that Yao Qian stored virtual currencies using hardware wallets and established multiple “mask accounts” to receive funds from exchanges. This approach exploits the difficulty in tracking virtual currencies, making it hard to detect illegal gains of hundreds of millions of RMB in a short period. Through these accounts, Yao Qian successfully transferred rebate funds paid by companies into a private virtual asset system. Ultimately, these hidden virtual currencies were converted into RMB cash, used to purchase a Beijing villa registered under relatives’ names, with an estimated property value of 20 million yuan.

ICO Fundraising and ETH Kickbacks: Virtual Currency Pathways for Benefit Transfer

The specific chain of corruption is even more shocking. Yao Qian used his authority to help a project facilitate ICO fundraising through exchanges, in exchange for large amounts of Ethereum (ETH) as “gratitude fees.” In 2018, the project gifted Yao Qian 2,000 ETH, which at its peak market value reached 60 million yuan. During this process, subordinate Jiang Guoqing acted as a key intermediary, coordinating with businessman Wang to transfer 12 million yuan in benefit transfer funds.

Millions in Cash Conversion: From Virtual Assets to Real Estate Investment

By 2021, Yao Qian began cashing out some virtual currencies. 370 ETH were exchanged for RMB, with the converted cash amounting to about 10 million RMB. This cash, hidden through virtual currencies, ultimately flowed into the real estate market, funding the purchase of luxury homes in Beijing. Notably, from the 2018 ETH gift to the 2021 cash conversion, Ethereum experienced significant price fluctuations over these three years. Yao Qian timed his cashing out when prices were relatively high, further amplifying the illegal gains from virtual currencies.

Due to their technical features, virtual currencies are exploited by criminals. This case warns us that in the digital economy era, anti-corruption efforts must continuously upgrade technological measures and strengthen monitoring of virtual asset flows.

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