Tim Alper iGaming Journalist
Tim Alper is a journalist covering betting news and regulation for CasinoBeats, with a focus on regulatory developments and international markets. He reports on breaking stories across Europe and Asia, including gambling law changes and...
Read Full BioChinese prosecutors have confiscated almost $17 million worth of Bitcoin from a man accused of stealing money from an overseas-based online sports betting site.
The suspect is a Shenzhen-based IT network security engineer, the Chinese media outlet The Paper reported. For legal reasons, media outlets have referred to him as Li Dong.
Police in Hunan Province arrested Li in 2024 on charges of theft and the unlawful acquisition of citizens’ personal information.
As part of their investigation, the authorities seized BTC 103, currently worth over $9 million. But just days after Li was released on bail, he was detained again, this time by police in Changge, Henan Province. After their own investigation, the Henan force confiscated an additional BTC 80 (worth $7.2 million).
Chinese Authorities Say Cases Aren’t Directly Connected
Officers in the two provinces have charged Li with different offenses and say the cases are not directly connected. Changge officials originally claimed Li had engaged in the “theft of citizens’ personal information.”
Prosecutors in Changge have alleged that, in 2020, Li exploited a security vulnerability in an overseas gambling platform popular among Chinese users “to obtain the personal data of 1.84 million Chinese citizens.”
They claimed that he manipulated this information to drain over $5 million worth of commission fees, moving the money into his own accounts.
Prosecutors say Li then converted much of this money into Bitcoin. Officers said Li confessed and admitted his guilt. But Li’s legal team contends there is insufficient evidence linking him to the theft.
It also said the seized data has been compromised, and alleged that his confession was “coerced” by police. The lawyers said officers threatened to prosecute Li’s pregnant wife if he did not confess.
His family has questioned the legality of Bitcoin confiscation under Chinese law, claiming the cases may be financially motivated.
Trial Begins
Li’s trial began on January 7 at the Changge City Court.
The prosecution told the court that it had ample “electronic” evidence of Li’s “multiple” crimes, including theft and the exploitation of private data.
The defense team challenged the prosecution to provide this evidence. The judge adjourned the court, but has yet to set a new hearing date.
Buying and selling Bitcoin is illegal in China, but Beijing has never taken steps to outlaw the ownership of crypto.
Gambling in almost all its forms is strictly prohibited in China. But despite bans, betting remains extremely popular. Illegal betting dens have sprung up in remote parts of the country. Chinese police have responded by using drone technology to “patrol” the countryside in search of underground casinos and betting dens.
In September last year, officials charged two individuals with operating an angling pond that offered cash rewards for anyone catching “lucky” black carp.
Controversy also continues to swirl around the rise of “gambling-like” lucky boxes, or blind boxes, offerings on Chinese e-commerce platforms.
On January 23, Tu Longke, the deputy director and a researcher at the Institute of Law, Shanghai Academy of Social Sciences, called on the judicial authorities to regulate blind box sales while cracking down on gambling crimes.
This move, Tu said, will help avoid and prevent the dangers of gambling addiction.
