The "Thank You Gift" of 2000 ETH: CCTV investigates the double life of former CSRC director姚前

Author: CCTV.com

Supervising Producer | Li Shaofei

Editor | Shan Jingyu

Proofreader | Meng Xia

Source | CCTV News

The TV documentary series “One Step Unstoppable, Half a Step Unyielding,” produced jointly by the Publicity Department of the Central Commission for Discipline Inspection and the China Central Radio and Television Station CCTV, aired its fourth episode “Technology Empowers Anti-Corruption” at 8 PM on January 14 on CCTV’s comprehensive channel. The new media platform of CCTV synchronized its release.

In addition to domestic and overseas spatial isolation, physical separation online and offline has also become a means for current corrupt elements to conceal their corrupt behaviors. Gold, cash, and valuables are common carriers of power-money transactions in traditional corruption cases. However, with the advent of the digital age, virtual currencies relying on blockchain technology are continuously developing, and new forms of corruption that must be guarded against have emerged.

These are key evidence items seized in a case involving disciplinary violations by a leader. Some look like mobile phones, some like USB drives, and others like remote controls. In fact, they are different models of hardware wallets used to store and manage virtual currencies. These three seemingly inconspicuous “wallets” contain virtual currencies with an estimated total value equivalent to hundreds of millions of RMB. Those who accepted bribes through this method once harbored a false sense of security, thinking they were sufficiently hidden.

Yao Qian, former Director of the Technology Supervision Department of the China Securities Regulatory Commission (CSRC): Honestly, I knew this was a sneaky act. How could I do such a thing? It’s just that I previously thought it was hard to find evidence.

Yao Qian, former Director of the Technology Supervision Department and former Director of the Information Center at the CSRC, previously served as the Director of the Digital Currency Research Institute of the People’s Bank of China. He was placed under investigation in April 2024. The Central Commission for Discipline Inspection and the National Supervisory Commission’s disciplinary inspection team stationed at the CSRC, together with the Guangdong Province Shanwei City Supervisory Committee, formed a special task force to handle this case. From the beginning, the team conducted in-depth analysis based on Yao Qian’s characteristics.

Zou Rong, staff member of the Discipline Inspection and Supervision Group stationed at the CSRC: Supervision of this person requires creating a profile. He has extensive experience working with digital currencies. Could there also be corruption involving the use of virtual currencies for power-money transactions behind this? In the anti-corruption practice in capital markets, new and hidden forms of corruption are quite prominent.

As the investigation deepened, the initial judgment of the case was confirmed. Several large transactions involving Yao Qian’s power and money were carried out using new and covert corruption methods, including accepting virtual currencies. Virtual currencies are just strings of numbers on the internet, separated from the holder’s identity, and completely isolated from commercial banks and payment institutions. They can be freely traded on the blockchain, cross-border transactions are unrestricted, and their concealment is extremely strong, making regulation very difficult. However, the investigation team was well prepared from the start, studying extensive professional knowledge, gaining a deep understanding of the operation mechanisms of virtual currencies, and pinpointing key investigation points.

Zou Rong: The holder mainly controls virtual currencies on the blockchain address through a private key. This private key is a string of dozens of characters, which is not easy to remember. Usually, a hardware wallet is used to store it.

Cai Qunting, staff member of the Shanwei City Discipline Inspection and Supervision Commission in Guangdong Province: During a search, two items must be checked: first, whether there is a hardware wallet; second, whether there are some pieces of paper with random mnemonic words, which are crucial during the search.

Sure enough, the team found a hardware wallet in a drawer of Yao Qian’s office. Meanwhile, the team strictly followed regulations and laws, making full use of big data and information technology to conduct a comprehensive investigation into Yao Qian’s situation, and found relevant traces. From the account information inquiries conducted legally, Yao Qian’s personal account showed no obvious abnormalities, but cross-referencing big data revealed several bank accounts opened under others’ identities, which were actually Yao Qian’s “mule accounts” under his control. Tracing the flow of large sums of money in and out of these “mule accounts,” one transaction of 10 million RMB led to a major discovery.

Zou Rong: During the preliminary review, we also found that Yao Qian had an abnormal transfer of 10 million RMB. After about four layers of analysis, we finally confirmed that it was from a virtual currency trader’s account.

Investigation revealed that shortly after the 10 million RMB was transferred into Yao Qian’s “mule account,” it was used to pay part of the purchase price for a villa in Beijing. The villa, valued at over 20 million RMB, was registered under a relative of Yao Qian’s, but actually belonged to him. All the funds for the purchase came from Yao Qian’s “mule account.” Besides this 10 million RMB, two other large deposits totaling 12 million RMB were also used for the house payment. Tracing the source of these 12 million RMB revealed similarly complex origins.

Shi Changping, staff member of the Shanwei City Discipline Inspection and Supervision Commission in Guangdong Province: He thought that after layers of concealment, he might be more isolated. But conversely, it would also mean more evidence and stronger proof to demonstrate the existence of the problem.

The investigation team penetrated through layers of “deception,” conducted in-depth investigation and evidence collection, and identified the source of the 12 million RMB. These funds all came from a data service company controlled by businessman Wang. Further investigation found that Yao Qian used his authority to assist this company in providing technological services in the securities and futures industry, forming a complete chain of evidence for the 12 million RMB benefit transfer.

Wang also revealed that a key intermediary in this power-money transaction was Jiang Guoqing, a subordinate of Yao Qian, who had a very close relationship with him. The team immediately took measures to detain Jiang Guoqing. Investigations showed that he participated in almost every large-scale power-money transaction involving Yao Qian, especially when Yao Qian accepted virtual currency bribes, Jiang Guoqing was involved.

Suspect Jiang Guoqing: It was originally intended for me to transfer it, but then I thought about it and was afraid of causing trouble, so I set up a transfer address. Then, they sent the coins to the transfer address, and from there, transferred to Yao Qian’s personal wallet. I know this was a benefit transfer. I was afraid, and I also knew it was wrong.

Jiang Guoqing followed Yao Qian into the Digital Currency Research Institute of the People’s Bank of China and the CSRC Technology Department. He was a trusted confidant of Yao Qian and also a pawn on his path of corruption. Many business owners involved in power-money transactions with Yao Qian were introduced or had their demands conveyed by Jiang Guoqing, who also took a share.

In 2018, a cryptocurrency boss named Zhang requested Jiang Guoqing to ask Yao Qian to help with a token issuance and financing project for his company. Yao Qian agreed to help, contacted a virtual currency exchange, and assisted his company in successfully issuing tokens, raising 20,000 ETH. Later, Zhang presented Yao Qian with 2,000 ETH as a thank-you, which at its highest valuation exceeded 60 million RMB. The influence of Yao Qian’s position was naturally a factor in this success.

Jiang Guoqing: Yao Qian’s influence in the industry is very significant because of his position.

To further solidify the evidence chain, the team attempted to reconstruct the entire flow of Yao Qian’s virtual currency transactions on the blockchain, based on the characteristics of virtual currencies.

Zou Rong: Virtual currencies are covert, but they are also a double-edged sword. They have two sides because they are also publicly accessible across the entire network. That is to say, anyone can check the inflow and outflow records of virtual currencies at any time for any blockchain address, which is determined by the decentralized nature of blockchain technology. So, they are also transparent.

Using blockchain technology, the team traced the flow of 2,000 ETH from Zhang’s ETH wallet address to Yao Qian’s ETH wallet address in 2018, and also tracked the complete record of Yao Qian transferring out 370 ETH in 2021, exchanged for 10 million RMB. The team conducted electronic evidence collection in accordance with regulations and laws, cross-verified various pieces of evidence, and formed a closed loop. Faced with such a solid chain of evidence, Yao Qian had no choice but to admit his disciplinary violations and illegal acts.

In November 2024, Yao Qian was expelled from the Party and dismissed from public office, and transferred to the procuratorate for review and prosecution according to law. The successful handling of this case has accumulated experience for discipline inspection and supervision agencies in investigating virtual currency bribery cases. Virtual currencies seem intangible and invisible, but once they are used in the real world, they cannot remain virtual; they will inevitably “appear.” The villa purchased by Yao Qian was the “revealing agent” that exposed him. The layers of deception he meticulously set up ultimately could not withstand the penetration. When Yao Qian was detained, the villa was still under renovation, but he had already lost the chance to move in.

Zou Rong: Virtual currency, if not exchanged for real assets, is useless. It’s just a string of numbers. When virtual assets turn into real assets, they are very likely to be exposed.

Using virtual currency to hide illicit gains is just a new form of corruption and covert corruption. Under the high-pressure campaign against corruption, no matter how innovative the methods or how covert the ways, as long as the core characteristic of power-money transactions is firmly grasped, and strict adherence to regulations and laws is maintained, with the full application of big data and other information technologies, efforts to identify and investigate will be intensified. Continuously enriching effective prevention and control measures, any form of corruption will be impossible to hide.