According to a report, the CEO of a Chinese blockchain firm allegedly misappropriated $45 million in state-owned Bitcoin

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Gao Ziyang is said to have been arrested in connection with the suspected liquidation. The firm denied his presence and has yet to acknowledge his detention.

Chinese authorities have recently accused a 27-year-old executive of blockchain company Beosin of misappropriating $45 million in state-owned bitcoins.

According to a story published on Thursday by local news outlet Tencent News, Chief Marketing Officer Gao Ziyang reportedly tried to short the state’s bitcoin (BTC, +0.47% ) last year.

The funds were entrusted to the organization after they were confiscated by police in a separate incident. Beosin was charged with keeping bitcoin on behalf of the Chinese Treasury, to which Gao had access, and converting it to fiat currency.

Instead of selling the funds, the executive is accused of attempting to short the seized bitcoin in August using undue leverage. Bitcoin was trading between $10,500 and $12,500 at the time, before reaching new highs of over $20,000 four months later. The erroneous short position resulted in the loss of around 300 million yuan (US$45.7 million) in bitcoin.

Only the suspect’s last name was revealed in the court file. According to the paper, the organization has denied Gao’s involvement in the case and has not acknowledged his detention. However, the company’s CMO is unavailable for comment, and his name was deleted from the company’s official website following the publication of the survey.

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