Chinese IT Expert Personal Data Breach Incident: The Truth Behind 8-Bit Cryptocurrency and 35.5 Million Yuan Embezzlement

A large-scale personal data breach involving IT expert Li Dong( from Shenzhen has recently attracted attention. According to reports by PANews, this incident has led to simultaneous investigations by police in multiple regions, resulting in the seizure of significant criminal proceeds, including 8-bit scale cryptocurrencies.

Multi-Regional Police Investigation and Seizure of 183 Bitcoins

The case was revealed on January 20 through PANews reports. Police in Zhanggaze City, Hunan Province, and Changge City, Henan Province, investigated Li Dong) on charges of “casino operation,” during which a substantial amount of Bitcoin was confiscated. Zhanggaze police uncovered 103 Bitcoins( worth approximately 49.61 million yuan) from Li Dong’s accounts, while Henan police secured over 80 Bitcoins( worth about 40 million yuan). The total of 183 Bitcoins seized from these two regions represents part of the criminal proceeds.

Data Leak of Personal Information of Over 1.84 Million Citizens

Initially, the investigation started with the charge of “casino operation,” but the Changge City Procuratorate in Henan Province pursued a different angle. According to the investigation results, Li Dong exploited vulnerabilities in the server program of the overseas online gambling platform “Kaiwin Sports” in 2020 to illegally steal personal information of over 1.84 million Chinese citizens. This is a very serious personal data breach crime, and Li Dong was prosecuted by the Changge City Procuratorate on charges of personal information theft and infringement.

Large-Scale Embezzlement of 35.5 Million Yuan and Cryptocurrency Conversion

According to the indictment, Li Dong’s crimes went beyond personal data infringement. He selected agent accounts on the “Kaiwin Sports” gambling platform with high commission rates and many sub-organizations, then changed the bank accounts receiving commissions for these accounts to accounts he controlled, embezzling over 35 million yuan in agent commissions.

Particularly noteworthy is how these embezzled funds were processed. Over 6.44 million yuan was transferred to 13 credit cards purchased by Li Dong, while the remaining 29.05 million yuan was used to buy cryptocurrencies. The cryptocurrencies purchased, including Bitcoin, were transferred to Li Dong’s wallet, which is the background for the previously mentioned evidence of 8-bit scale cryptocurrencies being seized.

Court Proceedings and Future Outlook

In January 2026, the Changge City Court held a public hearing on this case. However, the court announced that the hearing would be temporarily adjourned and resumed at a later date. Li Dong was not convicted on the initial “casino operation” charges but still faces trial for personal information infringement and embezzlement. This case is expected to be recorded as an example demonstrating how cryptocurrencies can be used to conceal criminal proceeds and the severity of large-scale personal data breaches.