A Chinese public official was sentenced to life imprisonment on November 8 for selling state secrets to foreign entities to cover his crypto investment losses.
The official, identified as Wang Moumou, was sentenced for providing confidential state information to foreign agents in exchange for financial compensation of over 1 million yuan in crypto transactions.
Wang Sentenced to Life for Selling State Secrets: Is the Chinese Government Still Strict on Crypto?
The People’s Court delivered the verdict, citing Wang’s engagement with foreign intelligence agencies and his accumulation of more than 1 million yuan through crypto transactions as payment for sensitive information.
The court stated that he has reportedly accumulated substantial debts from unsuccessful cryptocurrency investments.
In a bid to resolve his financial struggles, Wang sought part-time work on an online forum, inadvertently revealing his status as a civil servant.
According to a local news report, this led to his contact with foreign agents who recruited him to supply confidential information.
Over time, Wang allegedly provided various state secrets, initially for smaller payments in exchange for “a few photos and documents.”
However, as he continued to receive funds, he expanded his activities, ultimately passing high-level security documents.
Investigators reported finding several secret documents on his computer, obtained by circumventing established security measures, including registration and document-tracking protocols.
“The national security agency found that Wang provided top-secret and confidential state secrets to the other party and obtained more than 1 million yuan in spy funds through virtual currency recharge and trading,” the Chinese outlet Weixin reported.
China’s Criminal Law mandates severe penalties for espionage, including terms of over ten years or life imprisonment.
The Law on Guarding State Secrets obligates agencies to establish robust confidentiality protocols.
The People’s Court convicted Wang of espionage and sentenced him to life in prison, also stripping him of all political rights.
The Ministry of State Security added that Wang’s unit failed to implement adequate confidentiality protocols, which allowed the security breach to occur.
National security agencies have instructed the unit to adopt corrective measures.
From Fraud to Espionage: How China’s Crackdown Targets Crypto-Linked Crimes
The sentencing of Wang adds to a series of recent crypto-related espionage and fraud cases. China recently extradited Zhang Moumou, a mastermind behind a $14 billion crypto pyramid scheme, from Thailand.
Zhang’s MBI Group has been operating since 2012, promising high returns through virtual currencies, ensnaring over 10 million people.
His extradition, the first under the 1999 China-Thailand Extradition Treaty, followed a lengthy international manhunt and involved cooperation under China’s “Fox Hunting Operation.”
In another case, Taiwan convicted eight individuals for espionage, uncovering that Chinese intelligence had used cryptocurrency to pay Taiwanese military personnel for state secrets. Taiwan’s high court sentenced those to prison terms ranging from 1.5 to 13 years.
This case, among the largest of its kind, revealed that Chinese agencies use digital assets to support covert operations despite a domestic ban on crypto trading.
Amid these incidents, China’s national security agency is calling for increased vigilance, urging citizens to report suspicious activities, especially those linked to the sale of state secrets.
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