Overview of Internal Personnel Corruption in Internet Companies
In a notable decision delivered by the Haidian District Court alongside the China Internet Association, an extensive “White Paper on Internal Personnel Corruption Cases in Internet Companies” has been published, shedding light on alarming misconduct within the technology sector.
Case Study: Shi’s Financial Crimes
Among the highlighted cases is that of Shi, a former user manager at a prominent internet technology company, who was found guilty of serious financial crimes including bribery and embezzlement.
Shi’s tenure from April 2014 to January 2019, during which he managed user operations for the Tieba Business Division, enabled him to exploit his position for personal gain. In collaboration with a Beijing-based technology firm, he initiated a virtual currency reward scheme that netted him 6.08 million yuan in bribes.
Furthermore, from June to December 2016, he unlawfully cashed out virtual currency through various accounts linked to Tieba, draining an additional 3.66 million yuan from the company into his private bank account.
Legal Consequences of Shi’s Actions
On February 17, 2021, authorities apprehended Shi, leading to his sentencing where the court declared he had committed significant offenses: accepting bribes as a non-state functionary and embezzling company assets. Ultimately, he received a twelve-year cumulative sentence: nine years for bribery and six for embezzlement, which will run concurrently.
Despite Shi’s appeal against the verdict, the appellate court upheld the original ruling, making it final. The judge noted that Shi’s illicit actions spanned the comprehensive spectrum of the virtual currency operations within the internet company, from strategic development to implementation, culminating in the criminal activities of bribery and embezzlement.
Broader Implications and Challenges
The significant sum involved marked this case as one of the most severe internal corruption instances in the industry over the last five years. The complexity of digital transactions and the difficulties in tracing electronic evidence compounded the challenges faced during the investigation.
The case eventually came to light through an anonymous tip, taking nearly seven years to culminate in Shi’s arrest. This incident highlights critical issues surrounding the documentation and prosecution of virtual properties, reiterating the urgent need for comprehensive regulations and frameworks to combat corruption in the digital space.
(Beijing News)
