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

A Chinese language prosecutor is reported to have given a thumbs as much as the arrest of a listed huge information firm director accused of embezzling $8 million and utilizing the funds to purchase bitcoin mining rigs. Though Li Qunnan has denied the allegations, executives insist their proof implicates him.

Director’s Unsanctioned Use of Funds Found in November 2021

A prosecutor in Beijing, China, has reportedly authorized the arrest of a former director of a listed huge information agency who’s accused of utilizing fraudulently acquired funds to buy bitcoin mining rigs. Based on the corporate’s filings with Shanghai Inventory Change, the director, Li Qunnan, is alleged to have embezzled about $8 million (55.53 million yuan) from Zhongchang Huge Knowledge.

As per one Chinese language language report, Qunnan, a former chairman of Zhongchang Huge Knowledge, is believed to have misappropriated funds throughout his tenure as a senior govt of the corporate. Zhongchang Huge Knowledge claimed it solely turned conscious of the director’s unsanctioned actions in November 2021 when the corporate’s new administration carried out an “inspection of the subsidiary firms to standardize the company governance.”

After the inspection outed Qunnan because the wrongdoer that had been misappropriating funds, the previous director is reported to have despatched an announcement to Zhongchang executives through which he denied the allegations.

Firm Funds Used to Pay for Internet hosting Charges

Nonetheless, regardless of Qunnan’s denial, Zhongchang executives have insisted that he’s the wrongdoer and have produced proof to help their assertion. For example, the executives allege that between January to September 2021, their firm paid for “servers” value $4.1 million, however these don’t seem in its books. Upon inspection, the servers have been discovered to be “Whatsminer mining machine (mannequin: M31S-76T44W), supercomputing server (mannequin S10Pro),” the report mentioned.

Apart from paying for the bitcoin mining machines, Zhongchang claimed the previous director additionally used the corporate’s funds to pay for the internet hosting charges which totalled $3.8 million.

In the meantime, the report mentioned Qunnan has refused to cooperate with investigators and is at the moment regarded as overseas.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, writer and author. He has written extensively concerning the financial troubles of some African nations in addition to how digital currencies can present Africans with an escape route.

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