China digital yuan architect took over $8M in crypto bribes

The former architect of China’s digital yuan, Yao Qian, reportedly accepted cryptocurrency bribes worth more than $8 million while holding senior regulatory roles. Qian allegedly exploited the same blockchain technology he once helped design and promote to conceal illicit payments, only for that technology’s transparency to later expose his activities.

As reported by Crypto News, Chinese state media aired details of the investigation on 14 January in a documentary titled “Technology Empowering Anti-Corruption.” The programme showed how investigators traced 2,000 Ethereum, worth roughly 60 million yuan at peak prices, from a businessman to Qian’s personal wallet in 2018.

Qian previously served as director of the Digital Currency Research Institute at the People’s Bank of China (PBOC) and later held senior positions at the China Securities Regulatory Commission (CSRC). According to the investigators, he used those roles to extract bribes in both fiat currency and digital assets, concealing at least 22 million yuan ($3.1 million) in cash alongside substantial crypto holdings.

Hardware wallets exposed the trail

Investigators uncovered three hardware wallets hidden in a drawer in Qian’s office, each disguised as an ordinary USB device but collectively holding cryptocurrency worth tens of millions of yuan.

Qian had apparently believed that digital coins would keep him anonymous. But authorities say the very features he relied on—blockchain’s permanence and transparency—became his undoing. By piecing together on-chain data with traditional financial records, they traced the bribes straight back to his wallets.

The investigation found that Qian purchased a Beijing villa valued at more than 20 million yuan, using funds traced back to crypto exchanges. One single payment of 10 million yuan was shown to have originated from converted digital assets.

Authorities also dismantled a complex web of shell companies and accounts, many controlled by relatives or intermediaries. These accounts received large transfers that investigators traced through four layers back to crypto exchange funding sources, ultimately linking them to property purchases and regulatory favours.

Subordinate acted as crypto intermediary

A key figure in the scheme was Jiang Guoqing, Qian’s longtime subordinate who followed him from the central bank to the securities regulator. Jiang admitted to acting as the primary intermediary for crypto bribes.

In one case from 2018, Jiang introduced businessman Zhang to Yao, who then allegedly used his influence to help Zhang’s company issue tokens and raise 20,000 Ethereum via a cryptocurrency exchange. In return, Yao received 2,000 Ethereum.

In addition to accepting digital kickbacks, prosecutors found that Qian received lavish gifts, hosted opulent banquets, meddled in hiring decisions, and facilitated software procurement deals during his tenure at the CSRC. Investigators also noted his involvement in superstitious rituals and ties to individuals identified as central to illicit activities, both breaches of Communist Party discipline.

Qian was expelled from the Communist Party in November 2024 and formally handed over for criminal prosecution after investigators compiled what they described as a “closed loop of evidence,” combining blockchain data with financial forensics. The case turned on a key piece of proof: an unfinished luxury villa in Beijing, purchased with converted cryptocurrency, which ultimately exposed years of concealed digital dealings.

Legalising stablecoins

China is also considering legalising stablecoins backed by the yuan after years of strict laws on cryptocurrencies. The move, if approved, would overturn China’s 2021 ban on cryptocurrency trading and mining.

In the United States, President Donald Trump has expressed support for stablecoins and is developing a regulatory framework. This has positioned dollar-backed stablecoins as the leading option in global crypto finance. China may fall behind in a market expected to reach $4 trillion by 2030 if it does not respond quickly.

On 21 May 2025, Hong Kong enacted the Stablecoins Bill, which came into effect on 1 August. The law requires stablecoin companies to hold a licence from the Hong Kong Monetary Authority. This makes Hong Kong a location for stablecoin development within China. The US dollar currently serves as the backing for 99 percent of stablecoins. The market is projected to grow significantly by 2030, and without yuan-backed alternatives, the dollar is likely to remain the dominant currency.