On 12 October 2026, a companion investigative report detailed how the Laizhou Batong scheme was uncovered through analysis of large-value inter-company transfers (exceeding RMB 500,000) that circularly moved funds among the fragmented entities to simulate independent operations. The SAT’s new “fund flow topology” algorithm mapped the network structure, revealing a star topology centered on the actual controller’s personal accounts. The report includes anonymized network diagrams used as court evidence.
Key Takeaways
- Network Topology Analysis: The case introduces graph-based analytics as a standard audit tool, moving beyond entity-by-entity examination to ecosystem-level pattern recognition.
- Personal Account Integration: The investigation pierced the corporate veil by integrating personal banking data (obtained via court order) with corporate transaction data, exposing the ultimate beneficiary control.
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Source: Read Official Announcement