Thomas Daniels
Taiwan’s High Court has convicted eight individuals of espionage for China, marking one of the most significant spying cases in recent years. According to Taiwan’s Ministry of Justice’s Investigation Bureau, Chinese intelligence agencies used cryptocurrency to compensate Taiwanese military personnel involved in this covert operation.
The convicted group, comprising both active-duty and retired military officers, was found guilty of gathering state secrets on behalf of China. Sentences for the accused range from one-and-a-half to thirteen years in prison. The court did not disclose which specific cryptocurrency was used or if the transactions were facilitated by a third-party provider.
This case underscores China’s continued use of digital assets for espionage, despite its 2021 ban on cryptocurrency transactions, ostensibly aimed at maintaining financial stability and curbing crime. The anonymity and cross-border capabilities of cryptocurrencies remain attractive for intelligence operations, as evidenced by this and other cases.
Previously, the U.S. Department of Justice reported that Chinese intelligence officers had used Bitcoin to bribe a U.S. government employee in an attempt to procure documents related to the prosecution of a China-based telecommunications giant, believed to be Huawei. In that instance, blockchain analysis revealed the use of privacy tools, such as Wasabi Wallet, to obscure the transaction trail.
