China alleges digital yuan architect took crypto bribes

Chinese anti-graft authorities allege that Yao Qian, former head of the People’s Bank of China’s Digital Currency Research Institute and later a senior official at the China Securities Regulatory Commission, accepted cryptocurrency bribes and hid them using hardware wallets and layered accounts. Details were presented in an official documentary released on Jan. 29. Investigators reported tracing 2,000 ETH to a wallet controlled by Yao. He has been expelled from the Communist Party and referred for prosecution.

Investigators reconstructed transactions on public blockchains involving businessmen seeking regulatory favors. A 2018 transfer of 2,000 Ethereum-valued at about 60 million yuan at peak prices-was tracked from a businessman to a personal wallet attributed to Yao. Officials also recorded at least 22 million yuan in cash bribes and noted additional digital asset holdings tied to him.

Three hardware wallets were recovered from a drawer in Yao’s office. Zou Rong of the Central Commission for Discipline Inspection described the devices: “These three seemingly insignificant little wallets stored tens of millions of yuan.” Despite the use of multiple addresses and intermediaries, blockchain records were used to map fund movements and link them to Yao.

According to the inquiry, funds moved through shell accounts controlled by relatives and intermediaries to obscure their origin. Cross-checks with government databases identified accounts opened under other identities that investigators concluded were under Yao’s control. Transfers traced back through several layers to crypto exchange accounts were connected to property purchases and dealings with technology service providers.

The case file includes a Beijing villa purchased with money converted from digital assets, including a single 10 million yuan payment. The property remained unfinished when Yao was detained and was logged as physical evidence.

Jiang Guoqing, a longtime subordinate who worked with Yao at both the central bank and the securities regulator, was identified as an intermediary for crypto transfers. In a recorded statement, Jiang recounted: “I set up a transfer address where people would send coins, then transfer them to Yao Qian’s personal wallet.” He described a 2018 introduction of a businessman surnamed Zhang to Yao, asserting that Yao used his position and industry influence to help Zhang’s company issue tokens and raise 20,000 ETH through a crypto exchange in exchange for 2,000 ETH.

Authorities reported that a businessman surnamed Wang transferred 12 million yuan through an information services company in return for regulatory help. Shi Changping of Shanwei City’s Discipline Inspection Commission commented: “He believed that after setting up multiple layers, the system would be more isolated. In fact, the involvement of multiple parties strengthened the evidence chain.”

Beyond digital payments, case materials list gifts, lavish banquets, intervention in hiring, and software procurement arrangements during Yao’s tenure at the securities regulator. Investigators explained that blockchain transaction records were paired with conventional financial forensics to create mutual corroboration. An internal summary put it this way: “Cryptocurrency is useless if it can’t be cashed out-when virtual assets eventually become real assets, their true nature is easily exposed.”

Yao was expelled from the Communist Party in November 2024 and transferred to judicial authorities for prosecution. Officials indicated the case is being used to refine methods for pursuing corruption involving virtual currencies.

Work on the digital yuan continues. A new framework took effect on Jan. 1 allowing commercial banks to pay interest on e-CNY wallet balances. Through November 2025, the e-CNY recorded 3.48 billion transactions worth 16.7 trillion yuan, according to official figures. Private mobile payment platforms remain dominant in China’s payments market.