Cryptocurrencies Emerge as New Bribery Tool in China, Bringing Down Officials Accused of Taking USDT and Ether

Cryptocurrencies can be held and transferred across borders through wallet addresses, separating control of the assets from the holder’s real-world identity. That makes it harder for China’s disciplinary, financial regulatory and anti-money laundering authorities to trace bribe payments. The use of Tether (USDT) and Ether (ETH) as bribes also shows officials shifting from cash and property to digital assets in corrupt dealings.

A recent Hong Kong media report named Chongqing Mayor Hu Henghua and Yao Qian, former director of the People’s Bank of China’s Digital Currency Research Institute, as having reportedly fallen from office after being suspected of accepting USDT and Ether, respectively. However, available information does not specify the amounts involved, the dates the assets were received or the timing of the investigations. The allegations remain subject to formal announcements by China’s disciplinary, supervisory or judicial authorities.