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A former CCB Asia manager was sentenced to four years in prison after accepting more than $470,000 in Tether bribes.
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The bribes were linked to false letters of credit and collateral documents with a combined stated value exceeding $1.6 billion.
A former China Construction Bank (Asia) relationship manager has been sentenced to four years in prison in Hong Kong following his acceptance of over $470,000 in Tether (USDT) bribes to authenticate fraudulent financial documents worth more than $1.6 billion.
Lam Chun-yin, 32, received his sentence at Hong Kong’s District Court on September 18 after admitting guilt to conspiring with a fintech firm employee and other associates to take bribes. The Independent Commission Against Corruption (ICAC) reported that the digital asset payments amounted to more than US$470,000, which equals roughly HK$3.7 million. Additionally, Lam was directed to pay back approximately HK$3.7 million to CCB Asia.
Occurring between April and June 2022, the operation involved Tether transactions delivered in exchange for validating several standby letters of credit (SBLCs) that falsely claimed to originate from CCB. Furthermore, two collateral letters were deceitfully presented as issued by Yu Po Holdings and endorsed by CCB, bringing the total stated value of these instruments to over US$1.6 billion.
False CCB Documents Tied to Vesttoo Investment Scheme
Serving as a relationship manager in the consumer banking division at CCB Asia’s Causeway Bay retail branch, Lam lacked the authorization to handle business credit facilities or letters of credit. Even so, he positioned himself as the designated CCB contact responsible for issuing SBLCs on behalf of Yu Po Holdings, an entity that entered the market as an investor via the fintech company Vesttoo during early 2022.
Vesttoo maintained an investment platform focused on insurance-related transactions where participants had to supply bank-issued SBLCs as guarantees. According to the ICAC, Lam collaborated with a Vesttoo department head and associated parties to verify the fake paperwork.
CCB Asia uncovered the scheme through an internal inquiry, subsequently reporting the incident to the ICAC and providing assistance with the probe. Investigators ultimately determined that neither CCB nor its affiliate entities ever issued the SBLCs or collateral letters in question.
This matter connects to the broader downfall of Vesttoo, which sought bankruptcy protection in 2023 after the discovery of fraudulent collateral materials. The situation has since generated widespread litigation involving insurers, banks, and other insurance market participants.
During sentencing, Judge Ernest Lin Kam-hung stated that the employment of forged bank records exposed CCB to immense potential danger and damaged Hong Kong’s standing as a premier international financial hub. The judge initially handed down a six-year term before reducing it by one-third in light of Lam’s guilty plea.
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