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Beosin CMO Did Not Liquidate Police-seized Bitcoin Says Firm

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1 day agoSun Apr 11 2021 06:23:12

Beosin-CMO-Did-Not-Liquidate-Police-seized-Bitcoin-Says-Firm

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  • Beosin CMO Gao Ziyang did not misappropriate $45 million worth of police-seized bitcoin, according to the company
  • News reports alleged that Gao had traded the fortune on OKEx when he was supposed to be disposing of it on behalf of the authorities
  • Beosin has denied the claims, although Gao has been uncontactable

The Chief Marketing Officer (CMO) of Chinese security company Beosin did not access, trade and subsequently liquidate $45 million worth of bitcoin seized by police, the company has said. According to Chinese news outlet Tencent, “self-media” sources recently broke the story that Gao Ziyang had used his position to gain access to the bitcoin, which had been seized by police from a pyramid scheme. He was then said to have sent the bitcoin to OKEx to margin trade, losing the lot when his short position was liquidated. However, the company has since denied this and suggested it may take legal action against the reporters who broke the story.

Gao Alleged to Have Misappropriated Bitcoin For His Own Gain

Gao’s story has gained huge traction in China largely because of Beosin’s standing within the Chinese business community. They are one of the companies working within the Chain Circle, an economic relationship between China, Hong Kong, and Taiwan, and have contracts with the Chinese police force.

Back in November 2020, when Bitcoin was trading at $12,000, Gao was asked to store and then sell some 3,750 that police had seized from a pyramid scheme earlier that year. Rather than selling it, as the story goes, Gao sent the funds to OKEx where he tried to make personal gain by shorting Bitcoin. However, he got liquidated, losing all the funds in the process. The loss was only discovered when the authorities asked for proof from Gao of how he had disposed of the bitcoin and where the proceeds had gone.

Beosin Cries Fake News

As juicy as the story is however, it might be fake news. When asked to comment, a Beosin media correspondent said that, “The company’s external claims are false reports, and we are contacting legal affairs.” However, Gao was not able to be reached by Chinese media and Gao is no longer listed as an employee on the Beosin company register.

If the story does turn out to be true it would be a huge embarrassment for Beosin, who have been seen as a credible blockchain security company in a country that has waged a war against cryptocurrency and Bitcoin for around a decade.

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