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

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

Director’s Unsanctioned Use of Funds Discovered in November 2021

A prosecutor in Beijing, China, has reportedly accredited 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. According to the company’s filings with Shanghai Stock Exchange, the director, Li Qunnan, is alleged to have embezzled about $8 million (55.53 million yuan) from Zhongchang Big Data.

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

Company Funds Used to Pay for Hosting Fees

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

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

Meanwhile, the report stated Qunnan has refused to cooperate with investigators and is at present thought to be out of the nation.

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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 international locations in addition to how digital currencies can present Africans with an escape route.

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