TechFlow reported that according to the Daily Economic News, in August 2020, Li Yulin, the former Party Secretary of Huludao Bank, colluded with Li Xiaodong, the former acting president of the bank, Duan Hongtao (the bank's former major shareholder) and Zhou Zhilong, and misappropriated 2.6 billion yuan of the bank's funds under a fictitious asset management plan on the pretext of resolving the bank's non-performing assets, for Duan Hongtao to squander. More than 1.8 billion yuan of the funds were illegally converted into foreign currency and transferred to the account of a Hong Kong company controlled by Duan Hongtao.

The case involved many people, some of whom have been sentenced. The bank experienced many personnel changes and credit rating downgrades during this period.

It is reported that from September to October 2020, the defendant Chen No. 1 participated in organizing a money laundering gang, purchasing virtual currency at high prices and selling it overseas to launder the money, involving a huge amount of money. After being arrested, he truthfully confessed the facts of the crime and returned part of the illegal gains. The court found him guilty of money laundering, but he could be given a lighter punishment.