The Shaolin Temple abbot who laundered money with Bitcoin sentenced to 24 years in the first trial

The Intermediate People's Court of Xinxiang City, Henan Province, delivered its first-instance verdict on May 29, sentencing former Shaolin Temple abbot Shi Yongxin (original name Liu Yingcheng) to 24 years' imprisonment and a fine of 3.5 million yuan for four crimes including embezzlement of duty. Earlier investigative reports revealed that he allegedly used Bitcoin cold wallets, Ethereum private keys, and British Virgin Islands shell companies to build a transnational money laundering network. (Background: The Shaolin Temple abbot who hid illegitimate children also stashed a pile of cryptocurrency) (Context: China's Chongqing concluded a "large-scale USDT cash house group" transnational money laundering case worth tens of billions of NT dollars, with the mastermind sentenced to 6 years) Key Points - Shi Yongxin sentenced to 24 years in first instance, involving embezzlement of duty of 131 million + misappropriation of funds of 151 million + bribery acceptance of 11.63 million + bribery of 5.67 million yuan - Earlier reports indicated that 24 mnemonic phrase words found on prayer beads corresponded to a $130 million BTC cold wallet, while a USB stored 18 ETH private keys worth over $100 million - Allegedly transferred over 1.5 billion yuan through a BVI shell company over 8 years, converting to Bitcoin via Hong Kong underground banks to purchase overseas properties, with proceeds flowing back to merit boxes According to Xinhua News Agency, the Intermediate People's Court of Xinxiang City, Henan Province publicly announced the first-instance verdict on May 29, finding former Shaolin Temple abbot Shi Yongxin (original name Liu Yingcheng) guilty of embezzlement of duty, misappropriation of funds, bribery acceptance by non-state functionaries, and bribery, sentencing him to 24 years' imprisonment with combined penalties for multiple crimes, plus a fine of 3.5 million yuan. Liu Yingcheng stated in court that he accepted the verdict and would not appeal! The court found that from 2003 to 2025, Liu Yingcheng exploited his positions as Shaolin Temple abbot and chairman of the Shaolin Charity Welfare Foundation to embezzle over 131 million yuan of unit property; from 2012 to 2022, he misappropriated over 151 million yuan for personal use, failing to return it for more than three months. Since 2006, he accepted property worth approximately 11.63 million yuan, and since 1995, he bribed state functionaries with approximately 5.67 million yuan. The criminal activities spanned 30 years, and the court determined that the social impact was egregious and warranted severe punishment in accordance with the law. Mnemonic Phrases on Prayer Beads What truly stunned the crypto community in this case were the cryptocurrency money laundering allegations revealed in earlier reports by multiple Chinese media outlets. According to previous reports, public security investigators found a string of prayer beads at Shi Yongxin's residence, engraved with 24 English mnemonic phrase words (seed phrase) corresponding to a Bitcoin cold wallet worth approximately $130 million. Another USB flash drive contained private keys for 18 Ethereum wallets, with assets valued at over $100 million. It is alleged that the Shaolin Temple's basement also housed Bitmain S19 Pro mining rigs, accounted for under the name of "religious cultural activity equipment," reportedly mining substantial amounts of Bitcoin during the 2021 bear market. Bitcoin = Incense Money The channels for the abbot's previous illicit funds are even more astonishing. Prosecutors previously discovered that the Shaolin Temple's "International Dharma Propagation Special Account" made regular monthly remittances to a "Shaolin Culture Communication Co., Ltd." registered in the British Virgin Islands (BVI) (with Liu Yingcheng as legal representative), cumulatively transferring over 1.5 billion yuan over 8 years. The funds were converted into Bitcoin through Hong Kong underground banks, ultimately flowing to apartments in London's Kensington district, with property rights registered under his nephew's name. The rental income was then converted back to cash via Bitcoin and returned to the Shaolin Temple's merit boxes, forming a complete closed loop of "funds outflow, asset acquisition, and revenue return." However, it should be noted that the four charges identified in the first-instance verdict do not include "money laundering" or charges directly related to cryptocurrency. The aforementioned cryptocurrency details come from earlier investigative reports by Chinese media and are not criminal facts officially recognized by the court. The transfer of crypto assets may have been encompassed within the charges of embezzlement of duty and misappropriation of funds. The abbot probably chose blockchain for money laundering due to its anonymity, never expecting that the ledger would ultimately become ironclad evidence in the hands of public security. FAQ What crimes was Shi Yongxin convicted of? The Xinxiang Intermediate People's Court of Henan found Shi Yongxin guilty of embezzlement of duty, misappropriation of funds, bribery acceptance by non-state functionaries, and bribery, sentencing him to 24 years' imprisonment with combined penalties for multiple crimes, plus a fine of 3.5 million yuan. What is Shi Yongxin's connection to Bitcoin? Earlier Chinese media reports indicated that investigators discovered prayer beads engraved with Bitcoin mnemonic phrases and a USB containing Ethereum private keys at his residence, and he allegedly transferred temple funds into Bitcoin through British Virgin Islands companies and Hong Kong underground banks to purchase overseas properties.