Fraudulent Scheme and Its Impact
In December 2022, Liu, the accused, initiated a scheme that involved the use of a fake digital wallet application, leading to the unauthorized acquisition of 544 virtual currency wallet addresses and their corresponding keys. This fraudulent activity allowed Liu to misappropriate tens of thousands of virtual coins from various victims, including an individual named Yang, causing substantial financial damages.
Asset Recovery Efforts
Amid these challenges, Wang Zitai undertook a meticulous process to locate a qualified organization capable of managing the recovered digital assets. His efforts included several days of meetings across different relevant authorities until he successfully connected with the Third Research Institute of the Public Security Department, with the assistance of the Lucheng Public Security Sub-bureau. Wang entrusted this institute with the responsibility to identify a well-established disposal organization.
During the signing of the agreement for this endeavor, he rigorously reviewed each provision to ensure that the rights and responsibilities concerning the detection, sale, and transfer of the assets were clearly defined.
Successful Asset Disposal
With the backing of a licensed cryptocurrency exchange, the asset disposal was executed competently. Following the necessary formalities and after applicable fees were deducted, the realized funds were transferred to a designated court account through a secure Ministry of Public Security account. The transaction included:
- Over 6,000 USDT
- More than 2,700 TRX
- 0.8 BNB
Cumulatively, this amounted to almost 50,000 RMB.
Judicial Insights
“Given the rise in internet-related offenses, judicial bodies are actively seeking innovative methods for the management of virtual currencies,” Wang Zitai remarked regarding the proceedings.
He further noted that this successful transaction aligns with Article 23 of the recent Opinions issued by the Supreme People’s Court, which aims to regulate the handling of assets in relation to criminal judgments. Wang emphasized that this achievement was made possible by the collaborative efforts of various departments, contributing valuable insights for future cross-sector asset management related to these new asset classes.
