DOJ Charges Chinese Intelligence Officer For Bitcoin Bribe
- Regulators have become increasingly concerned about the growing cases of crimes involving cryptocurrencies such as Bitcoin.
- Guochun He could spend up to 60 years in prison if found guilty, and Wang faces a milder sentence of 20 years.
- Elliptic, a blockchain intelligence company, revealed that the Chinese agents used the Wasabi Wallet mixing service to hide the payments.
Two Chinese intelligence agents have been charged with obstructing justice by the U.S. Department of Justice. They allegedly attempted to pay a U.S. government employee $61,000 in Bitcoin to obtain documents connected to an inquiry into the Chinese tech company Huawei.
While announcing the arrest of the individuals, U.S. Attorney General Merrick Garland remarked that the “Justice Department would not tolerate attempts by any foreign power to undermine the rule of law upon which our democracy is based.”
According to the DOJ, the two intelligence officers, Guochun He and Zheng Wang, approached a federal agent who was also a double agent in 2019, to bribe and steal documents and essential details from the U.S. Attorney’s Office for the Eastern District of New York.
The documents in question were linked to an ongoing federal investigation involving a multinational telecommunications corporation headquartered in China. Separate reports confirmed that the company being investigated was Huawei.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division believes that the situation highlights the “threat the PRC government poses to our institutions and the rights of people in the United States.”
The DOJ claims Guochun He informed the government employee in September 2022 that they would make more payments in Bitcoin for information beyond what had already been provided. The agent allegedly paid $20,000 in Bitcoin in October.
The Department of Justice charged the Chinese agents with a conspiracy to serve as unregistered agents of a foreign state, attempted disruption of a criminal investigation, and conspiracy to forcefully repatriate PRC nationals.
The DOJ reportedly charged 13 other individuals involved in a more extensive sting operation. These individuals were said to have worked on behalf of the People’s Republic of China.
Reacting to the situation, Deputy Attorney General Lisa O. Monaco said,
The actions announced today take place against a backdrop of malign activity from the government of the People’s Republic of China that includes espionage, attempts to disrupt our justice system, harassment of individuals, and ongoing efforts to steal sensitive U.S. technology. The men and women of the Department of Justice will continue to defend the United States, our institutions, and our people from foreign threats that violate the law — no matter what form they take.
FBI Director Christopher Wray added that the recent case exposed the “PRC’s outrageous behavior within our own borders.” Director Wray noted that :
The FBI, working with our partners and allies, will continue to throw the full weight of our counterintelligence and law enforcement authorities into stopping the Chinese government’s crimes against our businesses, universities, and Chinese-American communities.
Regulators have often referenced incidents of Bitcoin being used in criminal activity as justification for regulating digital assets and cryptocurrencies. As a result, the United States has also stepped up its efforts to limit the use of crypto for crime and money laundering. So, U.S. residents can no longer use Tornado Cash, an Ethereum mixing service.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
