CoinWorld News Report:
Wang, a name unknown outside his government unit, is now infamous throughout China. He was once the perfect epitome of a public servant—diligent, trustworthy, and deemed untouchable.
However, some poor decisions let him down. He gambled in the world of cryptocurrencies, trying to turn his meager income into something more. Yet, those dreams of quick riches shattered, leaving him in massive debt. This is where the story truly gets interesting.
Facing a financial crisis, Wang did something most people would never dream of. He went online to look for an unconventional side job. In desperation, he posted on a forum, claiming to work in a confidential government department and in need of extra cash. It was like waving a red flag at a bull, but instead of a bull, foreign spies came running.
Selling Crypto Secrets: How Wang Lost Everything
Wang’s post caught the attention of a foreign agent, who sent him a text with an offer he couldn’t ignore. They called it “paid information” with “substantial compensation.” All he had to do was leak some secrets. Simple, right? Initially, Wang hesitated. But it was only a brief moment—debt can be a powerful motivator.
He broke down. What started as a trickle of information soon became a flood. The foreign agent wanted every drop, and Wang was all too willing to oblige. A few photos here, some documents there, and suddenly, he was making a lot of money, all of which flowed into his crypto wallet.
By the time China’s National Security Bureau found out, Wang had passed on critical top-secret information and made over a million yuan from his spy side job. The People’s Court didn’t hesitate to throw the book at him. Life imprisonment, with his political rights forever stripped away.
Security Breach: Loopholes and Lax Management
This is the embarrassment of Wang’s department. You would think a place handling national secrets would have some sort of ironclad security system. No. Confidentiality measures? Virtually non-existent. Regulations state that anyone handling classified documents should follow strict steps—registering, inventorying, and signing off.
None of this happened. Wang’s superiors handed him sensitive documents as if it were no big deal. No tracking, no accountability. When the agency finally audited Wang’s workstation, they found classified documents scattered around like discarded wrappers. It was amateur hour at its finest.
That’s all Wang needed to complete his espionage. The National Security Bureau did not take this lightly. Since then, orders have been issued for Wang’s unit to make significant changes to prevent another embarrassing breach from occurring.
Caught Between Foreign Forces and Extortion
For foreign intelligence agencies, getting an insider in China is a gold mine, and they knew how to ensnare officials like Wang. Once Wang began cooperating, he became their pawn.
When he tried to cut ties, thinking he could walk away, the agents tightened their grip. They bombarded him with threats, harassment, and pressure, warning that if he stopped cooperating, they would expose his secrets.
At this point, Wang was trapped. He had gone too far with no way out. The foreign agents knew they had him cornered, and they weren’t going to let him go easily. One task led to another, and soon he was in too deep to back out.
Chinese criminal law is very clear: anyone caught playing spy games for foreign agencies will be sentenced to at least ten years in prison, but life imprisonment is not out of the question.
The same goes for anyone caught recklessly handling national secrets. The government requires agencies to be fully responsible for maintaining confidentiality.
Trump’s Victory and China’s Thrilled Crypto Community
As Wang’s story unfolded, Bitcoin advocate Donald Trump was winning the U.S. presidential election. If there’s one thing Trump is known for now, it’s his love for digital currency.
Chinese cryptocurrency enthusiasts? They were thrilled. To them, Trump’s victory could mean greater opportunities for Bitcoin and other cryptocurrencies.
Livio Weng, CEO of Hong Kong-based HashKey Exchange, candidly stated: “Trump’s stance might inject new vitality into the U.S. cryptocurrency industry, and perhaps Hong Kong will also relax its cryptocurrency policies.”
Hong Kong is trying to position itself as a global Web3 hub, but Trump’s victory in the U.S. could propel the city to develop faster.
Despite China’s tough stance on cryptocurrencies, cracks are beginning to show. Meanwhile, Hong Kong has three exchange-traded funds (ETFs) directly investing in Bitcoin, with 97.69 million HKD recently changing hands. It’s the largest trading volume in over a month. In the U.S., spot crypto ETFs are exploding, stealing the spotlight and signaling to Hong Kong regulators that they may need to pick up the pace.
China’s ban forced most cryptocurrency businesses to leave the country, a move observers deem unwise. A professor at Hong Kong University of Science and Technology recently called China’s ban on crypto mining “unwise.” He noted the obvious: pushing businesses abroad only increases U.S. tax revenue.
Hong Kong regulators know they need to speed up cryptocurrency approvals to stay in the game. In August, HashKey Exchange’s Weng pointed out that Hong Kong might feel the need to “accelerate” its regulatory pace. As for mainland China, the question remains whether it will relax the ban or continue to roll out cryptocurrency.
Meanwhile, yesterday, Trump’s plans to establish a national Bitcoin reserve and all his other promises to the crypto community went viral across Chinese media nationwide.
