The Shaolin Temple abbot involved in Bitcoin money laundering sentenced to 24 years in the first trial

Henan Province Xinxiang City Intermediate People's Court announced the first-instance verdict on May 29, sentencing former abbot of Shaolin Temple, Shi Yongxin (original name Liu Yingcheng), for four crimes including embezzlement. He was sentenced to 24 years in prison and fined 3.5 million RMB. Prior investigative reports revealed that he allegedly used Bitcoin cold wallets, Ethereum private keys, and a shell company registered in the British Virgin Islands to build a transnational money laundering network.
(Background summary: The abbot of Shaolin Temple who secretly had a child also hid a bunch of cryptocurrencies)
(Additional background: China’s Chongqing sentenced a major USDT laundering group involved in cross-border money laundering worth over 10 billion TWD, with the mastermind receiving a 6-year sentence)

Key Summary

• Shi Yongxin was sentenced to 24 years in the first trial, involving embezzlement of 131 million yuan + misappropriation of 151 million yuan + bribery of 11.63 million yuan + kickbacks of 5.67 million yuan
• Previous reports pointed out that a 24-word mnemonic phrase on Buddhist prayer beads corresponded to a Bitcoin cold wallet worth 130 million USD, and a USB containing 18 Ethereum private keys valued at over 100 million USD
• Involved in transferring over 1.5 billion yuan through a BVI shell company over 8 years, then converting to Bitcoin via underground banks in Hong Kong to purchase overseas real estate, and flowing back into the donation box

According to Xinhua News Agency, the Henan Xinxiang City Intermediate People's Court publicly announced the first-instance verdict on May 29, finding former Shaolin Temple abbot Shi Yongxin (original name Liu Yingcheng) guilty of crimes including embezzlement, misappropriation of funds, accepting bribes as a non-state employee, and giving bribes, and sentencing him to 24 years in prison with a fine of 3.5 million RMB. Liu Yingcheng stated in court that he would accept the verdict and not appeal!

The court found that from 2003 to 2025, Liu Yingcheng used his positions as abbot of Shaolin Temple and president of the Shaolin Charity Welfare Foundation to embezzle over 131 million yuan of the organization’s assets; from 2012 to 2022, he misappropriated over 151 million yuan for personal use, which he did not return after more than three months.

Since 2006, he received about 11.63 million yuan in assets, and since 1995, he paid bribes to government officials totaling about 5.67 million yuan. The crimes spanned over 30 years, and the court deemed the social impact severe, warranting strict punishment.

Mnemonic phrase on Buddhist prayer beads

What truly shocked the crypto community was the previous reports by Chinese media exposing cryptocurrency money laundering allegations. Earlier reports stated that police found a string of Buddhist prayer beads at Shi Yongxin’s residence engraved with 24 English mnemonic words (seed phrase), corresponding to a Bitcoin cold wallet worth about 130 million USD. Another USB drive contained 18 Ethereum wallet private keys, with assets valued at over 100 million USD.

It is also claimed that the underground basement of Shaolin Temple stored a Bitmain S19 Pro mining machine, which was reported as “religious cultural activity equipment,” and that during the 2021 bear market, it mined a large amount of Bitcoin.

Bitcoin = Incense Money

The abbot’s previous illegal fund channels are even more astonishing. Investigators previously found that Shaolin Temple’s “International Propagation Fund” regularly transferred funds monthly to a company registered in the British Virgin Islands called “Shaolin Cultural Communication Co., Ltd.” (legal representative Liu Yingcheng), transferring over 1.5 billion yuan over 8 years.

Funds were converted into Bitcoin through underground banks in Hong Kong, ultimately flowing into an apartment in Kensington, London, registered under his nephew’s name. Rental income was then exchanged back into fiat via Bitcoin and flowed back into the temple’s donation box, forming a complete “funds outbound, asset purchase, and income return” cycle.

However, it’s important to note that the first-instance verdict did not include “money laundering” or any crimes directly related to cryptocurrencies. The cryptocurrency details above come from prior Chinese media investigations and are not officially recognized criminal facts by the court. The transfer of crypto assets may have been covered under charges of embezzlement and misappropriation of funds.

The abbot’s choice of blockchain money laundering was probably due to its anonymity, but in the end, the ledger became irrefutable evidence in the hands of the police.

Frequently Asked Questions

What crimes was Shi Yongxin convicted of?

The Henan Xinxiang Intermediate People’s Court found Shi Yongxin guilty of embezzlement, misappropriation of funds, accepting bribes as a non-state employee, and giving bribes, and sentenced him to 24 years in prison with a fine of 3.5 million RMB.

What is Shi Yongxin’s connection to Bitcoin?

Previous Chinese media reports indicated that investigators found Bitcoin mnemonic seed beads and a USB containing Ethereum private keys at his residence, and that he allegedly transferred temple funds into Bitcoin via a BVI company and underground banks in Hong Kong to purchase overseas real estate.