Scandal as $45M of stolen government funds lost using 100X leverage

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Scandal as $45M of stolen government funds lost using 100X leverage

Blockchain security company Beosin is at the center of a major scandal after its marketing director Gao Jiang was taken into custody and accused of embezzling government funds. He is accused of using public money to unsuccessfully curb BTC, resulting in a huge loss of over RM300 million, equivalent to $45 million.

Beozing, also known as Lianan Tech, has been working with Chinese authorities to help them investigate fraudulent fundraising schemes. After the funds were drawn down in 2020, Beozin was charged with the custody and sale of the assets, which would then be returned to the Treasury. Instead of selling the assets, CMO Gao Ziyan reportedly opened a short position in late August, hoping to increase the size of the positions for his personal gain. At that time, BTC was trading around $12,000.

According to authorities, documents obtained by OKEx show that the position began with a leverage of 10x, increased to 100x, and eventually ended in liquidation. They began making inquiries about the whereabouts of the funds until they finally discovered that the assets were no longer in the portfolio. On the internet, people admire Gao Ziyang’s age, which is described as early 20s. The future of Beosin, once considered a reliable blockchain security company in China, is now in serious doubt.

Peter Thiel’s statements on Bitcoin ignored

PayPal co-founder and venture capitalist Peter Thiel warned Wednesday that the Chinese government could use bitcoin as a financial weapon to undermine the stability of the US dollar. The response was more muted, with only 30 responses to a post on Cine-Finance, a social media account with more than 23 million followers. One of the main comments simply states that bitcoin was not invented by China, while another simply states that it is impossible.

Financial billionaire

On Thursday, Binance founder Zhao Changpeng, better known as CZ, appeared at number 1664 on Forbes’ annual list of billionaires. Its net worth is now estimated at $1.9 billion, up $700 million from its last listing in 2020.

Nanjing Ribensi, acquired byU.S.

US-based Future FinTech announced earlier this week that it had reached an agreement to acquire Chinese mining company Nanjing Ribensi Electronic Technology Co. Nanjing Ribensi operates a mining company that can handle up to 30,000 bitcoin miners. The agreement amounts to approximately $9.1 million and provides that the mining company will receive at least $2.3 million by 2021.

Acceleration of blockchain standards

China’s National Development and Reform Commission has called for a new plan, released on 1. April was published, an accelerated implementation of blockchain standards. The plan was jointly released by 28 government departments and covers technologies such as cloud computing, IoT and Big Data.

This weekly press release from mainland China, Taiwan and Hong Kong seeks to identify key industry news, including influential projects, changes in the regulatory landscape and blockchain integration.

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Emilia James
By Emilia James

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