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

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A Chinese prosecutor has reportedly approved the arrest of the director of a publicly listed big data company accused of embezzling $8 million and using the funds to buy bitcoin mining rigs. Although Li Qunnan has denied the accusations, the leaders insist their evidence points to his involvement.

Unauthorized use of funds by director discovered in November 2021

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Prosecutors in Beijing, China have reportedly authorized the arrest of a former director of a publicly listed big data firm who is accused of using fraudulent funds to buy bitcoin mining rigs. According to documents filed by the company with the Shanghai Stock Exchange, director Li Qunnan is suspected of embezzling about $8 million (55.53 million yuan) from Zhongchang Big Data.

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According to one Chinese report, Qunnan, the former chairman of Zhongchang Big Data, is believed to have misappropriated funds during his tenure as the company’s senior executive. Zhongchang Big Data said it only became aware of the director’s unauthorized activities in November 2021, when the company’s new management carried out “an audit of subsidiaries to standardize corporate governance.”

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After an audit identified Kunnan as the perpetrator of the misappropriation of funds, the former director reportedly sent a statement to Zhongchang’s management denying the allegations.

Company funds used to pay for hosting

However, despite Qunnan’s denials, Zhongchang leaders insisted that he was the culprit and presented evidence to support their claim. For example, executives claim that their company paid $4.1 million for “servers” between January and September 2021, but they don’t appear on its books. During the inspection, the servers were found to be “Whatsminer Mining Machine (Model: M31S-76T44W), Supercomputer Server (Model S10Pro),” the report says.

In addition to paying for bitcoin mining machines, Zhongchang stated that the former director also used the company’s funds to pay for hosting, which amounted to $3.8 million.

Meanwhile, the report states that Kunnan has refused to cooperate with investigators and is currently believed to be out of the country.

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Credit : news.bitcoin.com

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