TechFlow News, June 24: According to Caixin, Xiao Rui—the son of Xiao Jun, former member of the Wuhan Municipal Supervisory Commission—is suspected of accepting approximately HK$4.72 million in bribes from mainland construction contractors on behalf of his father and laundering over HK$64 million through underground banking channels. On June 23, the Hong Kong District Court found Xiao Rui guilty on all four counts of “money laundering” and one count of “using a false instrument.” The judge will announce the sentence on July 23. In 2014, Xiao Rui was granted permission to reside in Hong Kong; that same year, he purchased two funds offered by Manulife Financial for HK$10 million via his HSBC account to fulfill the investment requirement under the relevant immigration program. Between January 2016 and September 2017, multiple remittances totaling over HK$54 million were deposited into Xiao Rui’s Standard Chartered and DBS accounts.
Regarding the “money laundering” charges, Xiao Rui argued in court that the substantial sums involved were legitimate proceeds from his mother’s business operations and had been gifted to him for investment purposes in Hong Kong, with some funds derived from Bitcoin sales. However, the judge rejected this testimony, citing Xiao Rui’s failure to provide any basic records—such as transaction dates, reference numbers, or wallet addresses—to substantiate his Bitcoin claim.
