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Man Blackmail Listed Company for 2,099 Bitcoins, But ‘Stupid’ for Trading them into only $300k

A man who “cleverly” blackmailed a listed company for bitcoin has been reportedly “stupid” for getting less than $300k after trading the blackmailed 2,099 bitcoins into fiat money in a bad time.

How much are the 2099.7 bitcoins worth?

At the end of 2017, a piece of bitcoin valued almost $20,000. Calculated by the rate at that time, 2,099.7 bitcoins could have been worth around 270 million Chinese yuan ($39mln). Even today, when bitcoin price has dropped to around $6,500, that sum of bitcoins still worth 9.4 million yuan ($1.3mln).

However, the man sold all the 2,099.7 BTC in 2015 and got 2 million yuan ($288k), which he used to make the down payment of an apartment, purchase a BMW car and make some time deposit.

If he had not rushed to cash it out at that time when bitcoin was unfortunately at its lows, the man might have been another crypto rich, though the wealth came illegally. “It’s a ‘sad’ story,” as some local news reports commented.

Blackmail a listed company, ask for bitcoin payment

The story came out along with the court document released November 6 on an extortion case, in which a man blackmailed a listed company after he accidentally found some business misconducts of the company.

The blackmailer, named Du Bing, has reportedly contacted the company’s board secretary surnamed Zheng and threatened to expose those business misconducts. After negotiation, Du asked for 3 million yuan ($430k) which must be paid via bitcoin and the company was forced to agree.

In 2015, Zheng purchased 2,101.209 bitcoins with the company’s permitted 3mln yuan ($433k), and paid Du 2,099.7 BTC, which was immediately cashed out by the criminal, with the BTC worth 33% less than the purchase value, the man only got 2mln yuan (roughly $288k).

What’s Chinese courts’ attitude towards bitcoin?

As per the court document, the suspect has been sentenced to 13 years imprisonment for extortion and fined 50,000 yuan ($7,200) with his property confiscated by authorities.

In response to the defendant’s allegation that bitcoin is a virtual commodity which shall not be protected by the country’s law and there’s no evidence showing that his real estate and car were purchased using bitcoin, the intermediate court said “although it is impossible to collect the source of bitcoins in Du’s hardware wallet, this is caused by bitcoin’s anonymity nature, and also the reason why he chose bitcoin payment to cover up his criminal behavior.”

This is not the first time for courts to deal with bitcoin disputes in the country. Bitcoin’s tight connection to money has given rise to quite a number of disputes these years. As previous reports by 8btc, most of the courts’ rulings show that they are in place to protect crypto investors’ right to own and transfer cryptocurrencies.

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Department of Justice in China post the court’s ruling

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