Exec of Chinese Blockchain Firm Allegedly Misappropriated $45M in State-Owned Bitcoin: Report

Nasdaq

A 27-year-old executive of blockchain firm Beosin has reportedly been accused of misappropriating $45 million worth of state-owned bitcoins by Chinese authorities.

According to a report by local media outlet Tencent News on Thursday, Chief Marketing Officer Gao Ziyang allegedly attempted to short the state’s bitcoin last year.

How To Get Free Crypto  

The funds were in the company’s care after police had seized them in a separate incident. Beosin was charged with holding and converting the bitcoin to fiat on behalf of the Chinese treasury where Gao had access.

Related: As Coinbase Listing Nears, Analysts Pitch Valuations From $19B to $230B

Rather than sell the funds, it is alleged the executive tried to short the seized bitcoin in August using excessive leverage. At the time, bitcoin was trading between $10,500 and $12,500 before rising to new heights above $20,000 four months later. The erroneous short position ended up liquidating approximately 300 million yuan (US$45.7 million) worth of bitcoin.

The court file released only the last name of the suspect. The company has denied Gao’s involvement in the case and has not confirmed his detainment, according to the report. However, the company’s CMO can not be reached and his name has been removed from the company’s official website after the report. 

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Coinbase Banner  

Go to Source
Author: CoinDesk


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.