Categories: Bitcoin Latest News

Chinese Intelligence Officers Used Bitcoin in Scheme to Undermine Investigation, US Officials Allege

The two officers tried bribing a U.S. law enforcement official with $61,000 in bitcoin to help support what appears to be Huawei.Read MoreCoinDesk

Two intelligence officers working for the People’s Republic of China allegedly tried bribing a U.S. government official with bitcoin in an effort to collect information about a prosecution against an unnamed company, the Department of Justice announced Monday.

According to a press release and an unsealed deposition, Guochun He and Zheng Wang tried to collect information about an ongoing legal effort against the company, which appears to be Huawei Technologies, a multinational tech company headquartered in Shenzhen, China. Prosecutors are alleging the pair tried to obstruct the investigation, including by attempting to bribe a U.S. law enforcement official with $61,000 worth of bitcoin.

Attorney General Merrick Garland tied the announcement to two other actions taken by prosecutors in New York and New Jersey, who announced charges against a number of individuals working for the Chinese government on various surveillance and harassment allegations.

A deposition, signed by FBI Supervisory Special Agent Thomas Ryder, mentions the bitcoin aspect of the case numerous times, saying He called it a “safe” method of paying the law enforcement official, referred to in the document as GE-1.

“With respect to converting the Bitcoin payment to cash, He wrote: ‘I suggest you do it in gambling house, I know in some house of Las Vegas can make it, it will be private and safe. Please waiting for my further information,'” according to the deposition.

The defendants paid GE-1 in two different tranches, one for $20,000 and the other for $41,000, according to the deposition. One of the transactions was for a document that was supposed to help Huawei’s case and was classified, though the U.S. official did not actually share any classified material, the filing said.

Still, while the amount used was not a lot, U.S. officials Monday said the action was part of a broader picture about the Chinese government and its purported effort to undermine international laws and individuals’ rights.

“The Justice Department will not tolerate attempts by any foreign power to undermine the rule of law upon which our democracy is based. We will continue to fiercely protect the rights guaranteed to everyone in our country, and we will defend the integrity of our institutions,” Garland said during a press conference.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Recent Posts

Bitcoin Hits $65K for First Time Since Early August, Renewing Investor Interest in Spot ETFs

Bitcoin is back to levels not seen in nearly two months as it pushed past…

1 hour ago

Crypto for Advisors: The Growth of Bitcoin as Collateral

As traditional investment products face declining yields, savvy asset managers must consider emerging opportunities within…

2 hours ago

Protocol Village: Arthur Hayes-Backed Maelstrom to Fund Bitcoin Improvement Proposals Editor Atack

Post ContentRead MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]

4 hours ago

Bitcoin Swap Service Boltz Launches BTCPay Server Plugin For Lightning Payments

Today, Boltz announced the launch of the Boltz BTCPay Plugin, the first feature of its…

4 hours ago

First Mover Americas: Bitcoin Regains $64K as ETF Flow Trends Flip Positive

The latest price moves in bitcoin (BTC) and crypto markets in context for Sept. 26,…

5 hours ago

Bitcoin Jumps Over $64K Ahead of Powell Speech; IBIT Options Could Provide Longer-Term Boost

Powell is expected to speak at 13:30 UTC at the US Treasury Market Conference amid…

5 hours ago