Chinese millionaire sues himself through an offshore shell company to beat currency export controls

China’s millionaires, having looted their country, are anxious to get their money out of reach of the Politburo, to guard against confiscation should the political tides turn. Only one problem: the government will only let Chinese nationals move $50K/year out of the country.

The majority of China’s new super-rich are prepped to leave the country, but getting their cash out is a serious problem. Much of the volatility in Bitcoin can be ascribed to Chinese elites using the cryptocurrency to smuggle cash out of the PRC. With the Chinese Yuan tanking, the race is on to convert Chinese wealth to other currencies and get out while the getting is good.

But there’s a better way: for a small sum, you can just set up an offshore shell company, direct it to sue a Chinese company you own, throw the lawsuit, and then, oh well, I guess there’s nothing for it but to send a bunch of cash to your shell company, exempted from export controls, in the form of court-ordered damages.

http://boingboing.net/2016/02/18/chinese-millionaire-sues-himse.html

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