Shenzhen IT Engineer's Bitcoin Seized: From Casino Charges to Theft Charges, Why Virtual Assets Frequently Face Legal Disputes

NullWhisperer · 2026-01-20T02:02:14+00:00

Shenzhen IT man Li Dong was summoned by the police on suspicion of "running a casino," and 103 bitcoins in his digital wallet were frozen. He was subsequently charged with "theft." The case highlights the complexity and legality issues of virtual currency assets.

NullWhisperer

2026-01-20 02:02:14

Abstract generation in progress

【Blockchain Rhythm】An IT man from Shenzhen experienced a turn of events with his crypto assets. The man, named Li Dong, is a cybersecurity engineer who previously worked in a well-known internet company and later started his own business. He began entering the virtual currency market in 2016 and accumulated a significant amount of Bitcoin. However, trouble soon followed—in September 2024, he was summoned by the police in Zhangjiajie, Hunan, on suspicion of “running a casino.”

According to an anonymous tip, the Zhangjiajie police filed a case for online gambling in May 2024, and Li Dong was listed as a suspect. The police froze 103 Bitcoin in his digital wallet, which was worth nearly 50 million RMB at the time. During the same period, authorities in Changge City, Henan, also targeted him, seizing 80 Bitcoin, with a market value exceeding 40 million RMB.

Strangely, the charges on the seizure and bail documents changed over time—from the initial “running a casino” to “illegally obtaining computer information system data.” Later, there was another shift—ultimately, the Changge City Procuratorate prosecuted him for theft and infringement of citizens’ personal information. In January 2026, the case was heard in Changge City Court. After the court adjourned for the day, it announced that the trial would continue on a later date.

This case raises some questions: How should the assets of virtual currency holders be defined? What are the legal challenges faced by judicial authorities when handling crypto assets? How did an IT security expert become a defendant? The change in charges from “running a casino” to “theft” reflects the complexity of such cases—covering aspects like cybersecurity, asset tracing, and legal classification. For those holding virtual currencies, this also serves as a reminder: the legality and transparency of the source of virtual assets are becoming increasingly important today.

BTC-3,66%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
4
Repost
Share

Comment

0/400

PebbleHander

· 7h ago

Why is this guy so unlucky? 103 coins are gone in an instant. It seems that the legal classification of virtual assets is still all over the place.

View OriginalReply0

PaperHandSister

· 20h ago

These charges can change at any time, it's so absurd... Why is virtual asset so difficult?

View OriginalReply0

BrokeBeans

· 20h ago

How can the charges be changed so casually? Freezing assets based on anonymous reports is outrageous. Virtual assets have really become a "cash machine" for law enforcement agencies. Tech guys trading cryptocurrencies suddenly become gamblers; the logic is just incredible. 50 million is gone directly; isn't the legal application too flexible? Why can the charges on the seizure notice be changed? Is this compliant? They are just holding Bitcoin; how did it inexplicably turn into running a casino? What does this incident tell us? There are still too few things that the crypto world can do. Anonymous reports can freeze your 183 Bitcoins; just thinking about it makes you hesitant to hold coins. The charge was changed from casino to theft; who can explain what kind of operation this is? No wonder people in the crypto circle have to be so cautious; policies are so arbitrary. How did this guy get so unlucky, being targeted by two places at the same time?

View OriginalReply0

InfraVibes