Xiaomeng, 19, returned home on 21/4 after giving a statement at a police station in Zhengzhou city, Henan province. The day before, her father, Mr. Zhou, had taken her to confess to embezzling company assets.

Mr. Zhou, who owns a frozen food business, discovered the embezzlement in 11/2025. Needing funds for a year-end shipment, he asked his daughter, Xiaomeng, who managed the company's finances, to withdraw money from the business account. Xiaomeng informed him the account was empty.

Upon checking bank statements, Mr. Zhou found that over 17 million yuan (approximately 60 billion VND) had been transferred to livestreaming and online gaming platforms over an one-and-a-half-year period, from 7/2024 to 11/2025. Of this, 11 million yuan was spent on virtual gifts for streamers, and 6 million yuan on virtual card boxes.

Xiaomeng, 19, in Zhengzhou, was addicted to being a "Top 1 Alpha" online, leading her to embezzle 17 million yuan from her father's company. Photo: China News Weekly.

Mr. Zhou, who is divorced and lives with Xiaomeng, had entrusted her with managing the company's books since she was 16 due to his busy schedule. He later gave her full control over both company and personal bank accounts.

Bank data revealed Xiaomeng initially made small deposits, but her spending gradually escalated. On some days, she conducted 57 transactions, spending 160,000 yuan. On 17/4/2025, she spent 100,000 yuan in a single deposit to purchase virtual gifts for a streamer.

Her substantial spending earned Xiaomeng the title of "Top 1 Alpha" on the platform, leading male streamers to frequently chat with her late into the night. Xiaomeng confessed to investigators that constant virtual money deposits made her lose touch with the real value of money.

"Gifting 100 virtual rockets costs 100,000 yuan, but I felt nothing", Xiaomeng stated. "In real life, if asked to buy a handbag, I find it expensive and cannot bring myself to pay".

The 17 million yuan lost was primarily the company's working capital. Mr. Zhou revealed that 8 million yuan was borrowed from friends and nearly 10 million yuan from banks, in addition to debts owed to partners. His family business now faces bankruptcy, with two houses already mortgaged.

In China, the Cyberspace Administration of China (CAC) prohibits individuals under eight years old from giving virtual gifts. Those aged eight to under 16 require guardian consent, and those aged 16 to under 18 must verify independent income or have guardian permission. However, because Xiaomeng is 19, these protection and refund regulations for minors do not apply. This is why platforms have refused Mr. Zhou's refund requests, citing "voluntary spending by an adult".

The father was compelled to report his daughter. "She could go to prison for 10 years", he said. "But if the police do not identify this money as evidence in the case, my family will never get it back. This is the only way to save our family's livelihood".

Lawyer Zhou Zhaocheng from An Jian Law Office in Beijing stated that Xiaomeng's actions constitute embezzlement of an "especially large sum", carrying a potential sentence of 10 years to life imprisonment. However, if investigators prove the deposited funds are evidence in the case, multi-channel networks (MCNs) and livestreaming platforms would be obligated to issue refunds.

Zhengzhou police are continuing to handle the case.

Source: China News Weekly, Economic Daily