The investigation revealed that several Kuaishou employees conspired with external parties to embezzle company funds for business development incentives. Under the platform’s subsidy policies, these incentives were designed to reward operators and service providers.
However, one employee in a position of authority manipulated the process for personal gain.
According to the report, the employee, identified by local media as Feng, was responsible for approving new participants and formulating incentive policies.
During the rollout of a new bonus program, Feng created policy gaps and leaked internal data to outside collaborators. These partners then submitted falsified applications that appeared to meet eligibility requirements, allowing them to fraudulently claim reward funds.
The conspirators set up shell companies to receive the stolen funds and conceal the theft. They then transferred the money through eight offshore crypto exchanges, converting it into Bitcoin in multiple batches.
The group also used crypto mixing services to obscure the origin and destination of the assets, making the flow harder to trace.
After converting the Bitcoin into Chinese yuan through underground channels, the funds ended up in accounts controlled by Feng and the accomplices.
Despite this significant laundering process, law enforcement agencies were eventually able to track and seize more than 90 BTC tied to the scheme.
The authorities also prosecuted the individuals involved, handing out prison sentences ranging from six months to 14 years for financial misconduct and embezzlement.
