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Shenzhen IT Engineer's Bitcoin Seized: From Casino Charges to Theft Charges, Why Virtual Assets Frequently Face Legal Disputes
【Blockchain Rhythm】An IT man from Shenzhen experienced a turn of events with his crypto assets. The man, named Li Dong, is a cybersecurity engineer who previously worked in a well-known internet company and later started his own business. He began entering the virtual currency market in 2016 and accumulated a significant amount of Bitcoin. However, trouble soon followed—in September 2024, he was summoned by the police in Zhangjiajie, Hunan, on suspicion of “running a casino.”
According to an anonymous tip, the Zhangjiajie police filed a case for online gambling in May 2024, and Li Dong was listed as a suspect. The police froze 103 Bitcoin in his digital wallet, which was worth nearly 50 million RMB at the time. During the same period, authorities in Changge City, Henan, also targeted him, seizing 80 Bitcoin, with a market value exceeding 40 million RMB.
Strangely, the charges on the seizure and bail documents changed over time—from the initial “running a casino” to “illegally obtaining computer information system data.” Later, there was another shift—ultimately, the Changge City Procuratorate prosecuted him for theft and infringement of citizens’ personal information. In January 2026, the case was heard in Changge City Court. After the court adjourned for the day, it announced that the trial would continue on a later date.
This case raises some questions: How should the assets of virtual currency holders be defined? What are the legal challenges faced by judicial authorities when handling crypto assets? How did an IT security expert become a defendant? The change in charges from “running a casino” to “theft” reflects the complexity of such cases—covering aspects like cybersecurity, asset tracing, and legal classification. For those holding virtual currencies, this also serves as a reminder: the legality and transparency of the source of virtual assets are becoming increasingly important today.