Director of Listed Chinese Company Embezzles $8 Million, Uses Funds to Purchase Bitcoin Mining Rigs

A Chinese authoritative is reported to person fixed a thumbs up to the apprehension of a listed large information institution manager accused of embezzling $8 cardinal and utilizing the funds to bargain bitcoin mining rigs. Although Li Qunnan has denied the allegations, executives importune their grounds implicates him.

Director’s Unsanctioned Use of Funds Discovered successful November 2021

A authoritative successful Beijing, China, has reportedly approved the apprehension of a erstwhile manager of a listed large information steadfast who is accused of utilizing fraudulently acquired funds to acquisition bitcoin mining rigs. According to the company’s filings with Shanghai Stock Exchange, the director, Li Qunnan, is alleged to person embezzled astir $8 cardinal (55.53 cardinal yuan) from Zhongchang Big Data.

As per 1 Chinese language report, Qunnan, a erstwhile president of Zhongchang Big Data, is thought to person misappropriated funds during his tenure arsenic a elder enforcement of the company. Zhongchang Big Data claimed it lone became alert of the director’s unsanctioned activities successful November 2021 erstwhile the company’s caller absorption carried retired an “inspection of the subsidiary companies to standardize the firm governance.”

After the inspection outed Qunnan arsenic the culprit that had been misappropriating funds, the erstwhile manager is reported to person sent a connection to Zhongchang executives successful which helium denied the allegations.

Company Funds Used to Pay for Hosting Fees

However, contempt Qunnan’s denial, Zhongchang executives person insisted that helium is the culprit and person produced grounds to enactment their assertion. For instance, the executives allege that betwixt January to September 2021, their institution paid for “servers” worthy $4.1 million, but these bash not look successful its books. Upon inspection, the servers were recovered to beryllium “Whatsminer mining instrumentality (model: M31S-76T44W), supercomputing server (model S10Pro),” the study said.

Besides paying for the bitcoin mining machines, Zhongchang claimed the erstwhile manager besides utilized the company’s funds to wage for the hosting fees which totalled $3.8 million.

Meanwhile, the study said Qunnan has refused to cooperate with investigators and is presently thought to beryllium retired of the country.

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